New Delhi: Major cryptocurrencies continued to bleed on Tuesday, followed by negative news flow from China. All the top 10 cryptocurrencies were trading lower at 9.30 hours IST. Polkadot shed 8 per cent, whereas Bitcoin, Solana, Ethereum and Binance tanked between 6-7 per cent each.
The global crypto market cap tanked over 5 per cent to $1.91 trillion compared to the last day. However, the total crypto market volume gained as much as 68 per cent to $150.66 billion.
Polkadot remains fundamentally a strong asset, despite the fact that it has been in a downturn for the past few days, said ZebPay Trade Desk.
“The shift occurred due to the parachain crowd loan process which allowed participants to vote for their favourite projects via locking their DOT token. It reducing the circulating supply of the coins, putting an upward pressure on the price,” it added.
Tech View by Giottus Cryptocurrency Exchange
Ethereum (ETH), the second largest cryptocurrency, is also the world’s largest blockchain platform and is home to the most diverse range of smart contracts, dApps and other altcoins. Its recent EIP-1559 upgrade comes with a reduced fee structure and a deflationary outlook.
However, after facing rejection from the $4,000 range, ETH has had a strong correction. Such a correction – called a double top – is a significantly bearish projection. On its way down, ETH has broken through its 20-day, 50-day moving averages, further consolidating its bearish trend. The more optimistic perspective is that of the daily RSI (14) being less than 30 – only seen a handful of times this year, and a 200-day moving average of approximately $2,580, both of which should act as support.
ETH has underperformed Bitcoin (BTC) below its 200-day moving average. With BTC having broken down from its 200-day moving average, the role of BTC in ETH’s price action is expected to be strong. All eyes may remain on Bitcoin this week as it struggles to break and hold the 200-day moving average.
With ETH currently trading just above its psychological resistance at $3,000, any closes on the larger time frames below this level may trigger fresh sell-offs. Investors may want to wait for dips and enter at levels between $2,580-2,750 on the lower side.
Support: $2,821, $2,866, $2,900
Resistance: $3,150, $3,300, $3,394
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)