Major Crypto Market Losers
The cryptocurrency arena, renowned for its volatility, has recently witnessed significant downturns affecting some of its biggest names. Here’s an insightful examination of the leading crypto market losers: Bitcoin (BTC), Ethereum (ETH), XRP, Toncoin (TON), and Binance Coin (BNB).
Bitcoin (BTC)
Bitcoin, the trailblazer of cryptocurrencies, has recently found itself among the top losers in the crypto market. It suffered a notable setback, experiencing an 8.72% drop to $57,211. This decline has reverberated across Bitcoin’s critical metrics. Its market capitalization now stands at a formidable $1.13 trillion, marking a 5.21% decrease. Interestingly, despite the price downturn, trading activity surged with a 41.30% increase in the 24-hour volume, totaling $38.58 billion. This surge in volume relative to market cap, at 3.40%, indicates heightened selling pressure.
BTC has fallen by 7% compared to its price a week ago. Source: TradingView
From a technical perspective, Bitcoin’s Relative Strength Index (RSI) sits at 47.55, signaling a neutral to slightly bearish sentiment. This suggests some selling pressure exists, though not yet at extreme levels. Bitcoin’s price has slipped below its 9-week Simple Moving Average (SMA) of $64,809, a critical indicator signaling a potential continuation of the downtrend, indicating weaker short-term price action against the longer-term trend.
Ethereum (ETH)
Ethereum, often viewed as Bitcoin’s primary competitor, has also been affected by the market downturn. ETH’s price plummeted by 9.73% to $3,101.77, leading to a 5.50% decrease in its market cap, now at $375.36 billion. Like Bitcoin, Ethereum has witnessed a substantial increase in trading volume, soaring by 52.71% to $20.34 billion. The volume to market cap ratio stands at 5.42%, highlighting robust trading activity.
ETH has declined by over 8% compared to a week ago. Source: TradingView
Technically, Ethereum’s RSI is presently at 49.51, echoing Bitcoin’s stance, indicating a neutral to bearish trend. This implies ETH is not oversold at current levels, but momentum leans bearish. ETH’s price has dipped below its 9-week SMA of $3,432.79, suggesting potential continued downward pressure in the near term.
XRP
Another prominent loser in the crypto market, XRP, witnessed a 6.83% drop to $0.4429. Its market cap decreased by 5.85% to $24.81 billion. Despite this decline, XRP experienced a significant surge in trading volume, up by 55.66% to $1.61 billion, with a volume to market cap ratio of 6.47%.
XRP has faced a decline of more than 6% in the last 7 days. Source: TradingView
XRP’s technical indicators indicate a more bearish trend compared to its counterparts. XRP’s RSI is notably low at 35.63, approaching oversold territory, suggesting a potential for a rebound but reflecting intense selling pressure. The current price is well below the 9-week SMA of $0.49288, indicating a strong bearish trend, underscoring the depth of the current downtrend.
Toncoin (TON)
Toncoin, a newcomer in the crypto landscape, saw a 7.06% decline, settling at $7.1047. Its market cap decreased by 8.94% to $17.58 billion, while its 24-hour trading volume surged by 42.19% to $509.96 million. The volume to market cap ratio stands at 2.90%.
TON decreased by 5% within a week. Source: TradingView
Interestingly, Toncoin’s RSI is at 64.90, relatively high, suggesting a correction after being overbought despite recent declines. The current price hovers near the 9-week SMA of $7.0862, indicating a critical juncture where a bounce could signal support or a break below might lead to further declines.
Binance Coin (BNB)
BNB, among the top losers, experienced the most substantial decline, plummeting by 10.71% to $519.5. Its market cap also fell by 6.57% to $76.87 billion. The 24-hour trading volume increased by 15.99% to $2.01 billion, with a volume to market cap ratio of 2.62%.
BNB is down by 10%. Source: TradingView
BNB’s RSI stands at 51.47, indicating a neutral sentiment despite the significant price drop, suggesting it has not yet reached oversold conditions. BNB’s price has fallen below its 9-week SMA of $592.7, signaling bearish momentum exacerbated by increased regulatory scrutiny on Binance, impacting BNB’s price amidst broader market downturns.
Top Crypto Market Losers: Implications for Investors
The current market downturn affecting these prominent coins reflects broader bearish sentiments. All five assets exhibit bearish trends with prices below their respective 9-week SMAs. XRP appears most oversold based on RSI, while Toncoin shows potential for a rebound.
However, it’s crucial to recognize that technical analysis is just one aspect. Fundamental factors such as regulatory changes, technological advancements, and macroeconomic conditions play pivotal roles in cryptocurrency price dynamics. Thus, today’s losers may become tomorrow’s winners under favorable conditions.