Crypto Analysis

Crypto Market Consolidates as Bitcoin Enters Oversold Territory

Despite the sell-off event, the underlying investor activity remains strong as they seek to buy in on the discount

Crypto Market Consolidates as Bitcoin Enters Oversold Territory
Crypto Market Consolidates as Bitcoin Enters Oversold Territory

The global cryptocurrency market appears to have stabilised today at $2.08 trillion, down by a modest 0.9 per cent as of 9 am IST as the dust started to settle post the massive sell-off event on Tuesday. Top 50 altcoins Algorand (ALGO), Solana (SOL), and FTX Token (FTT) helped the market to revive as Bitcoin (BTC) hovered around $46,000 for most of the day. Total crypto trade volume across exchanges plunged by 26 per cent.

BTC had a perfect retest at the support level of $44,400 intraday to bounce back to close the day at $46,010. BTC trade volumes declined by 24 per cent. BTC entered the oversold territory according to the RSI index indicating an accumulation phase ahead. BTC enjoys critical support at $42,000, the 20-week moving average (SMA), while the next major resistance comes at $47,000. BTC dominance is now at 41.4 per cent.

Ethereum (ETH) capitalised on BTC’s muted activity to bounce from support at $3,215 to register a 1.3 per cent gain to close the day at $3,470. ETH’s support levels are forming at $3,400 while its major resistance level is at $3,700.

Some of the altcoins managed to negate the losses it incurred on Tuesday. ALGO broke into the top 20 cryptocurrencies market cap by rallying 62 per cent as the protocol prepares to launch decentralized governance features next month. Last week, El Salvador had suggested that it will use ALGO to develop its blockchain infrastructure. SOL, FTT, and LUNA registered 21, 15, and 9 per cent gains respectively today. Uniswap (UNI) and Chainlink (LINK) dropped by 3 per cent.

Despite the sell-off event, triggered by a cascade of leveraged long liquidations in futures market, the underlying investor activity remains strong as they seek to buy in on the discount. Traders expect BTC to consolidate between $45,000 and $47,000 with an occasional drop to $42,000 levels before making a move towards $50,000 again.

Top Gainers today:

  1. Algorand (ALGO) : 62.0%

  2. IOST (IOST) : 41.1%

  3. Mina (MINA) : 40.8%

Top Losers today:

  1. Revain (REV): -8.5%

  2. Telcoin (TEL): -7.6%

  3. Perpetual Protocol (PERP): -5.5%

The analysis includes the top 100 cryptocurrencies only as of 9 am IST

Source: CoinMarketCap

Crypto News at a Glance:

  1. US-based crypto exchange Coinbase has received warnings from the Securities and Exchange Commission (SEC) of a potential lawsuit over the yet-to-be-launched lending program by the exchange.

  2. Nigeria’s central bank will reportedly roll out its central bank digital currency, eNaira on October 1 amid negative cryptocurrency sentiments from several government officials.

  3. Decentralized data aggregator SubQuery has raised $9 million in a funding round co-led by Arrington XRP Capital, Digital Currency Group, and Stratos Technologies to build Polkadot’s first data aggregation layer to strengthen data indexing.

  4. Ethereum transaction protocol Eden Network has raised $17.4 million in a seed funding round led by Multicoin Capital to drive the adoption of its network among developers, miners, and users.

  5. IOHK, the team behind Cardano (ADA), has officially confirmed the launch of its Plutus upgrade that will trigger the final Hard Fork Combinator (HFC) event on September 12 to implement smart contract capabilities on Cardano.


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June 2024