Selling pressure continues on crypto market, driving top cryptos down 3 per cent, and sending market cap at $1.89 trillion
The crypto market continued to face selling pressures at higher levels after the strong recovery post last week’s sell-off event because of reiteration of China’s regulatory crackdown. As a result, top cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and Cardano (ADA) slid more than 3 per cent over the day. Total crypto market cap stood at $1.89 trillion, down 4 per cent on Tuesday morning. Trade volumes across exchanges declined 15 per cent as markets absorbed the selling bout.
After a strong rebound from the 20-week moving average (MA) at $40,700 over the last two days, BTC got rejected above the $44,000 region again on Monday. It further slipped during the day losing 3.6 per cent to close at $42,500. BTC’s short-term support is forming at $42,000, while the critical support at the 20-week MA got readjusted to $40,600. The next major resistance for BTC is at $44,900, the 20-day exponential moving average. BTC trade volumes across exchanges had a modest decline of 3 per cent while its dominance was at 42.5 per cent.
ETH lost 6 per cent on Tuesday to close below $3,000 at $2,950. ETH faces a crucial resistance level of $3,200 while the next major support comes in at $2,600. ETH is expected to bounce between these levels for a while.
All top 20 cryptocurrencies showed bearish sentiment, reflecting the overall mood of the market except for Terra (LUNA) which managed to register a modest 1 per cent gain. ADA continues to succumb to overhead resistance levels near $2.45 in the last three days. Critical support at $1.9 remains an important level for the bulls to defend to prevent a downtrend. ADA is near $2.15, down by 4 per cent.
BTC and major altcoins are expected to remain range-bound this week as it faces selling pressures at overhead resistance levels. However, the stablecoin supply ratio (SSR) has started to dwindle, indicating capital flow back to the markets that could mark significant buying activity in the upcoming weeks.
- OKB (OKB): 11.8%
- Huobi Token (HT): 10.9%
- Fantom (FTM): 9.7%
- Perpetual Protocol (PERP): -10.4%
- SushiSwap (SUSHI): -10.1%
- Arweave (AR): -9.5%
Analysis includes the top 100 cryptocurrencies only as of 9 am IST
Crypto News at a Glance
- Digital fintech platform COTI has introduced a new algorithmic stablecoin called Djed for Cardano in an effort to expand decentralized finance (DeFi) on the network. Djed, which will not be backed by fiat reserves, will use smart contracts on Cardano to ensure price stability.
- Blockchain tech company Emurgo has announced that it will invest $100 million in the cardano ecosystem to accelerate decentralized finance, NFT solutions, and blockchain education.
- Sparkpool, the second-largest Etheruem mining pool in the world, has decided to suspend operations due to the ongoing Chinese crackdown on cryptocurrency related services.
- US investment bank Morgan Stanley has doubled its exposure to Bitcoin through Grayscale Bitcoin Trust (GBTC) as it has increased its shares of GBTC by more than 105% since April.
- Global exchange Bitfinex spent $23.7 million in fees for an Ethereum transaction, reportedly making it the biggest transaction fee ever paid in history. A majority of the fees - $22.1 million - was eventually returned to the wallet.