The correction in altcoins was steeper and sharper compared to the larger tokens. The rising cost of energy and disruption in the supply chain is hurting the sentiments further.
All of the major crypto tokens were in the red on Tuesday. Solana and Shiba Inu dived about 9 per cent each, whereas Cardano and Dogecoin shed 8 per cent each. Terra fell 7 per cent, followed by Ethereum which declined 6 per cent.
The global cryptocurrency market cap tumbled to $1.83 trillion, dropping as much as 6 per cent in the last 24 hours. However, total cryptocurrency trading volume increased by almost 58 per cent to $101.03 billion.
What’s cooking in India
Crypto trading volumes of India’s major exchanges have nosedived since April 1, the day a new tax on crypto profits came into effect, according to data collected by Crebaco, a cryptocurrency research firm.
In other news, multiple Indian political and governmental entities had their Twitter accounts compromised over the past three days, with non-fungible token-related content posted on their feeds.
Edul Patel, CEO and Co-founder of Mudrex said that Bitcoin and Ethereum have lost nearly 6 per cent to trade below $40,000 and $3,000, respectively.
“Most cryptocurrencies also sank significantly over the past day. The situation could be attributed to the rising inflation levels and economic declines across the world,” he added.
Bitcoin has fallen below $40,000, its first support. Now, its next support level is at $37,500. It is approaching the oversold levels, which may lead to a brief pause in the price correction, said Kunal Jagdale, Founder, BitsAir Exchange.
“On the upside, Bitcoin faced a stiff resistance at $48,000 levels and now $50,000 levels will be more challenging due to the pessimism that has emerged lately,” he added.
The policy arm of US Senate Republicans has issued a policy paper on crypto, signaling the GOP is making its way toward a more unified approach to crypto regulation.
Also, Ethereum’s first mainnet shadow fork went live today, as the developers of the world’s second-largest cryptocurrency by market cap continue transitioning the backing network to a proof-of-stake (PoS) model.
The Luna Foundation Guard (LFG), a Singaporean entity that is establishing a reserve protocol for the algorithmic stablecoin UST, added $173 million in bitcoin (BTC) to its wallet over the weekend via a series of buys.
Tech View by Giottus Crypto Exchange
Solana, a blockchain much like Ethereum, is a platform to run dApps, NFTs and a whole bunch of crypto ideas. Its token – SOL – has performed well since 2021. Today though, it trades at nearly 60% below its all-time high of about $260.
After rejection from resistance at the $147 level, SOL also lost support at $120 and is currently trading around the $100 mark. A trendline drawn from August 2021 suggests that some more downside may be on the cards – perhaps to $90 – before a bounce that may help reclaim the $120 level.
If the broader crypto market experiences a resumption of bullish sentiment, $147 and even $160 are achievable targets for SOL. With its strong fundamentals and large community, SOL may therefore be a compelling long-term buy for many at current levels.
Support: $95, $90
Resistance: $120, $147, $168
(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.)