The cryptocurrency market has continued its downward trend over the past 24 hours, with the total crypto market capitalization (TOTAL) and Bitcoin (BTC) experiencing declines. Metaverse-based token SAND is the market’s top loser, with a double-digit price drop during the period in review.
In the news today:
- Justin Sun, founder of Tron, has invested $30 million in World Liberty Financial (WLFI), a DeFi platform backed by Donald Trump. The project had struggled to attract investors, but Sun’s investment may help revive its prospects.
- Binance Labs has invested in Kernel — a restaking infrastructure aimed at boosting BNB Chain’s security and utility by converting BNB’s security into programmable trust for crypto services and applications.
Coin Selloffs Gain Momentum
The total crypto market capitalization has dropped by $82 billion over the past 24 hours. TOTAL currently stands at $3.19 trillion, falling toward the critical support formed at the $3 trillion level.
The market’s 24-hour decline has led to widespread liquidations, with 159,554 traders liquidated and a total of $518.30 million wiped out. Long positions suffered the most, accounting for $389.13 million of the total liquidations.
On the daily chart, readings from TOTAL’s Moving Average Convergence Divergence (MACD) indicator confirm the uptick in selling pressure. At press time, the MACD line (blue) is poised to cross below the signal line (orange).
This indicator measures an asset’s price trends and momentum and identifies its potential buy or sell signals. When set up this way, it signals a potential bearish trend, indicating that selling pressure may increase. If selling activity persists, TOTAL risks falling to support at $3 trillion. If this level fails to hold, it may slip further to $2.72 trillion.
On the other hand, a resurgence in crypto market activity will push TOTAL toward its all-time high of $3.36 trillion.
Bitcoin at $100,000 Remains Out of Reach
Leading coin Bitcoin has continued to witness a surge in distribution among market participants. It currently trades at $94,767, noting a 4% price decline over the past 24 hours. During that period, its trading volume spiked by over 50%, confirming the selling activity in the market.
When an asset’s price drops while trading volume rises, it indicates strong selling pressure, as more traders are actively offloading the asset. This combination often signals bearish sentiment, with the heightened activity reflecting widespread market participation in the decline.
Bitcoin currently exchanges hands above critical support formed at $88,630. Its price risks dropping below $90,000 to this level if profit-taking activity strengthens.
However, if new demand enters the market, this may drive the coin’s value up to reclaim its all-time high of $99,419.
The Sandbox Begins to Shed Recent Gains
Metaverse-linked token SAND has seen its value plummet by 18% over the past 24 hours, making it the altcoin with the most losses during that period.
This double-digit decline comes after SAND hit a new yearly high of $0.86 during Monday’s early Asian session. The token trades at $0.66 at press time, plummeting 23% from this price peak. It currently trades above support at $0.61.
If selling pressure heightens, this price level risks being breached. On the other hand, SAND’s price may rally above $0.72 if market sentiment shifts and traders adopt a hodling strategy.
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