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Over the last 24 hours, another round of selling pressure wiped out almost $200 billion from the worldwide crypto market cap. Bitcoin and Ethereum, the market giants, returned to monthly lows, and tremors were felt throughout most altcoins. Under extreme bearish conditions, large cap alts such as Cardano and XRP fell below main support thresholds.
Yesterday, Bitcoin traded in the $39,000-$41,000 range but was unable to break out of this channel. Selling momentum has returned, dragging Bitcoin into the $35 level. Naturally, the wider sector followed suit and has suffered significant losses in the last 24 hours. On the 4-hour timeframe, Bitcoin was trading above the 78.6 percent Fibonacci mark of $36,478. Another breakdown would make the industry leader fall below $30,000, and missing this level would be disastrous for the company’s structure. A bullish result, on the other hand, is likely if BTC continues to break past the 61.8 percent Fibonacci mark and $42,000.
RSI has traded in the oversold area many times in the last week. Although this is normally followed by a turnaround, bearish sentiment had not yet subsided. Despite the sell-off, the Chaikin Money Flow trajectory provided some reason for hope, as capital inflows stayed stable.
Although setting a buy order for Cardano at its 61.8 percent Fibonacci level ($1.53) close to its 200-SMA seemed feasible, another surge of selling pressure in the wider market crypto overburdened most alts. ADA was no different, since it fell below its 200-SMA (green) and was trading at $1.42 at the time of publication. If ADA continues to fall, it will reach another support level at $0.953. To re-establish bullish leverage, ADA will need to climb above the 38.2 percent Fibonacci mark ($1.89) and 50-SMA (yellow).
Stochastic RSI can remain in the oversold area for a few days before reversing its pattern, as previously predicted. The red bars on the Awesome Oscillator indicated rising sale momentum.
XRP’s declines have been compounded in the last 24 hours, when it has fallen to the 23.6 percent Fibonacci level above $1. Although XRP does not have a strong connection with Bitcoin, a lack of investor interest was visible in its market as well. At press time, the beleaguered cryptocurrency was trading at $0.873, down 22% in the previous 24 hours. A drop towards $0.818 would almost certainly open up long signals, but traders could wait for the market leaders to recover before making such a leap.
XRP bulls will take over if the price crossed the 50% Fibonacci mark ($1.26) and the 50-SMA (red). Oversold circumstances were illustrated by the RSI. The last time RSI traded in this area for an extended period of time was in December 2020, when the SEC lawsuit was first revealed. The Squeeze Momentum Indicator revealed a turbulent market with significant bearish momentum.