New Delhi: Major cryptocurrencies extended their losses on Friday as investors continued to make gains in digital tokens. Eight of the top 10 cryptocurrencies were red at 9:30 a.m. IST. However, Solana rose 16 percent.
Global crypto market cap was below the $ 2 trillion mark, down 3 percent from the previous day. Similarly, the total crypto market size fell about 4 percent to $ 109.12 billion.
Bitcoin’s breakout above the $ 50,000 mark didn’t last long, and the chart patterns signal that its rally has been threatening to fade since July. The decline reduced Bitcoin’s rally to around 60 percent from a July low.
“On the last day, the majority of the coins were in red due to the sell-off with the exception of Solana. Despite the decline, market capitalization is nearly $ 2 trillion, ”said Sharan Nair, chief business officer, CoinSwitch Kuber.
The crypto markets are currently in a difficult position due to the lack of strong support. The last 24 hours have been characterized by high volatility. The entire market felt the shock of that volatility with a similar sell-off across the spectrum. Markets are likely to remain unstable for the next 24 hours, said Edul Patel, CEO and co-founder of Mudrex.
Tech View from ZebPay Trade Desk
Options worth $ 800 million expire today, which could affect the price of ETH. The ETH rally fueled the congestion in its network, which led to higher gas charges and further strains the network. This could be the reason why, despite the inflows, ETH hasn’t seen a rally as big as its close rivals like Solana or Cardano. At this point, the network appears to have become its own worst enemy, as its increased adoption has contributed significantly to the surge in decentralized financial applications and the growth of competitors.
ETH created a “double bottom” or “W” pattern at $ 1,720 with a cutout of $ 2,400. The asset resisted around these levels a few times, but once it broke the bulls took the opportunity with both hands and hit a high of $ 3,380, which rose nearly 96.5%.
Currently, the asset is resisting at a crucial $ 3,350 level (61.8% Fibonacci retracement level) and trading in a broad range from $ 3,350 to $ 2,975. Breakouts on either side with good volume will continue to set the trend for the asset.
Support: $ 2,950, $ 2,650
Resistance: $ 3,400, $ 3,850
The time is in UTC and the daily time frame is 12:00 PM – 12:00 PM UTC
(The views and recommendations in this section are the analysts’ own views and recommendations and do not reflect those of ETMarkets.com. Please consult your financial advisor prior to entering into any position in any of the above assets.)