Cryptocurrencies are increasingly causing panic among investors. The clamor to buy the dip is also dying as it seems the dip keeps getting deeper. We can see the effect of this on the global cryptocurrency market cap.
The week opened with the industry worth $1 trillion and saw a little boost that saw it peak at $1.07T. Unfortunately, the market took a turn for the worst as several digital assets lost notable fractions of their worth.
As a result, the sector under consideration dipped to a low of $933 billion. It closed at this valuation, which indicates a more than 12% drop. A closer look at the performance of these cryptocurrencies, we observe the extent to which they dipped. The image below sheds more light on this.
The image above further amplifies the bearish sentiment across various digital assets. One of the most glaring is that Ethereum lost more than 20% over the last seven days. On the other hand, the XRP recorded notable gains during this period.
Shifting attention to fundamentals this past week marked a new milestone for the entire ETH community. The much-anticipated merge happened right after the completion of the biggest upgrade. Let’s see how some coins in the top ten reacted to this change.
The apex coin continued its uptrend from two weeks ago. As a result, it started the previous intraweek session with notable price increases. It gained almost 3% as it hinted at more price action.
Unfortunately, its buying pressure suddenly dropped and the BTC retraced. As selling pressure mounts, it dipped to a low of $19,862 for above $22k. The largest crypto by market cap closed that session with losses exceeding 9%.
Bitcoin dipped more on Wednesday but recovered to its opening price for the day. Further downtrend the next day and recover over the next two days. The last day of the week was marked by further price loss as the apex coin lost more than 3%.
At the end, BTC recorded losses of more than 11%. Several indicators responded negatively to this move. One such is the Moving Average Convergence Divergence. It is worth noting that the apex coin experienced a bearish divergence on Sunday.
Additionally, the metric remained under 0, denoting the current market trend. The Relative Strength Index was also volatile during the period under consideration as we noticed a sudden drop on Tuesday.
It dipped from 61 to a low 42. However, it gained stability above 40 and ended the week there. Following the same train as the previous metric. The Pivot Point Standard is also negative. BTC edged closer to testing its first pivot support. Nonetheless, we observed how the bulls defended the $19k support.
Ether failed to perform as expected during the previous seven-day period. Many traders believed that the coin would break key resistance as a result of the positive momentum it enjoyed during that time.
Unfortunately, this did not play out as planned. Starting on Monday, the coin lost almost 3% of its value. The correction got worse during the next intraday session. It flipped key support like $1,600.
The price decrease came to a halt at $1,651 but there was no notable improvement as the asset closed that trading session with losses exceeding 8%. It saw a little more movement to the top as it gained more than 4%.
However, this move became obsolete on Thursday as the largest alt recorded its biggest loss for the week. The $1,500 support broke as it was subjected to intense pressure. ETH saw a low of $1,456.
Ether closed that period with losses of up to 10%. It retested its 20-day low on Sunday as the broke the $1,400 support and dipped as low as $1,325. The closing price was just a few clicks from the first pivot support.
Based on MACD, we observed that the coin experienced a bearish divergence on Wednesday due to the intense selling pressure. There was no notable improvement from this indicator as the week progressed.
The Relative Strength Index also mirrored the gradual drop in the price of the asset under consideration. It closed the period under consideration below 40 which showed that the asset is close to being oversold. In the end, ETH lost more than 20% during the past intraweek session.
Binance coin showed a lot of volatility over the last seven days. However, it succumbed to the prevalent market sentiment. Since losing the $300 mark during the last week of August, the altcoin is in a constant struggle to reclaim it.
A profitable ending two weeks ago led many to believe the coin would flip this key level during the previous intraweek session. This failed to come true as trading conditions worsened as the period under consideration progressed.
On Monday, a red doji was present on the chart as the asset under consideration to show any notable volatility. An effort to reclaim $300 failed on Tuesday as BNB faced strong rejection at $298.
It is safe to say the bears took over and wreaked havoc. The altcoin dipped to a low of $275. Little recovery and then it ended the session at $277 which resulted in a more than 5% drop.
Binance coin retested another key support on Thursday. It briefly flipped it but rebounded at $265. Nonetheless, it recorded losses exceeding 3% as it closed at $271. It slowly climbed to erase the incurred losses over the next two days.
Unfortunately, trading action on Sunday proved this effort fruitless. We observed that the $265 support broke as BNB dropped from $280 to $263. It closed at $266 which indicates that the altcoin lost 4.59%.
Price action on Wednesday resulted in a bearish divergence as per the Moving Average Convergence Divergence. The indicator also hinted at efforts to reverse this phenomenon, which failed to yield any results.
Like BTC, we also observed a little stability above 40 as per the Relative Strength Index. It is also worth noting that the asset closed above this mark. Nonetheless, BNB edged closer to retesting its first pivot support as the week came to a close.
Ripple is one of the few assets to close the previous intraweek session with a green candle. Although there was no notable price change, the doji describes the increased volatility the coin experienced.
It maintained its pivot point during the first day of the week as it saw a slight increase in price. However, this changed on Tuesday as trading conditions worsened. The altcoin faced intense selling pressure which led to massive retracement.
XRP dipped to a low of $0.33, breaking the five-day-old $0.34 support. In the end, the asset recorded losses exceeding 7%. A little recovery the next day triggered sighs of relief as many thought the downtrend was over.
This proved to be untrue as trading activity on Thursday was filled with more bearish action. The altcoin closed that intraday session with losses of almost 5%. The bulls fought back as the coin saw more buying pressure the next day.
As a result, it ended the intraday session with gains exceeding 8%. Additionally, it reclaims $0.34 and also its pivot point. The uptrend continued into Saturday as the asset briefly flipped its first pivot resistance.
Although it retraced below the metric, it marked the first time in more than 30 days the altcoin is surging above $0.37. On Sunday, XRP made more moves toward key resistance. In its latest bid to $0.40, it faced strong rejection at $0.39.
Massive selling pressure followed afterward which ensured that ripple lost a significant fraction of its value. It closed with losses almost hitting 5%. Nonetheless, the coin ended the previous week in the green.
MACD showed a near-convergence on Wednesday, which came to a halt as prices improved. XRP closed the period under consideration with the 12-day EMA trending above the 26-day. RSI was also notably bullish.
Cardano’s price movement closely mimicked that of ethereum. Its start was not one of the best as the asset lost a few percent. The drop got worse on Tuesday as it experienced immediate correction after its opening at $0.50.
It lost the support and dipped as low as $0.46. It saw no notable losses and recorded losses exceeding 7%. Wednesday presented more in terms of bullish action as ADA surged by more than 3%.
Unfortunately, this move failed to make any dent in the weekly assessment. The next day, the accumulated gains were erased by an equal move to the downside. Two days of uptrends on Friday and Saturday reignited hopes of a bullish end to the week.
This was false as Cardano saw its biggest dip on Sunday. It retested its fourteen-day low at $0.44 and ended the intraday session at the mark, which indicates a 7.86% drop from its opening of $0.48.
In the end, ADA lost 22% with several indicators blaring warnings. One such is the Moving Average Convergence Divergence. The metric shows that the altcoin had a bearish divergence on Sunday which may spell more downtrend.
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