What’s Causing the Prolonged Crash in Altcoin Market?
- Altcoins have been ruled by the bears for the past week.
- The global crypto market cap is $2.33T, a decline of 2.41% within 24 hours.
The altcoin market is experiencing a prolonged decline, making it a hard time for investors. It is influenced by several factors that have created a complex environment for the assets. The launch and oversupply of new coins play a vital role in the decline, leading to a steep market.
According to crypto analyst Pentoshi , around $200 million a day is needed to balance the prices of these newly launched coins. This imbalance between demand and supply has led to a steep fall in altcoin prices while the market struggles to preoccupy the rush of upcoming assets.
Analyzing Some of the Altcoins
As Bitcoin is the largest asset by market cap, it may influence other coins’s momentum. At the time of writing, BTC is trading at $65,181, with a decline of 0.93%. Bitcoin has been struggling to break the $65K range for the last week. Thus, its nearby resistance may be found at $66,245. The initial support is found in the $64,235 range.
While analyzing the altcoins, most of the coins are declining. Ethereum is currently traded at $3,405 and is down by 3.42%. The nearest resistance level is at $3,580, with the nearest support level at $3,389. It has seen a one-week price decline of 3.39%.
Doge currently trades at $0.1205, dipped by 10.24%. Over the past week, it has been down by 14.72% and has a one-month decline of 20.82%. The resistance and support might stay at $0.1379 and $0.1100, respectively.
Meanwhile, Cardano’s price traded at $0.375, down by 7.31% in the last 24 hours, and a weekly decline of 12.71%. Nearby resistance is at $0.410, and support is at the $0.267 range.
Shiba Inu ’s price is currently at $0.00001782, but over the past 24 hours, it’s been down by 10.60%. Notably, a dip of 19.33% marked over the past week. The key resistance may occur at $0.00001999 and the support level at $0.00001620.
Further, Uniswap is trading at $9.65, observing a dip of 11.31% in a day. But it was up by 3.83% in the past seven days. The major resistance and support stand at $10.55 and $8.36, respectively.
However, with a loss of momentum in the altcoin market after reaching notable highs, most of the altcoins are struggling to maintain their positive price pace.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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