On Wednesday, the cryptocurrency market witnessed a sudden sell-off which plunged the Bitcoin price below $60000. With an intraday loss of 4%, the BTC price sparked the correction of major altcoins.
Earlier this week, the substantial inflow from BTC ETFs triggered a relief rally in the market. However, concerns are mounting over increased selling pressure from distributions by the defunct crypto exchange Mt. Gox and liquidations by government bodies.
Given the potential for an extended correction, market participants might consider avoiding the specified altcoin to protect their investments.
Also Read: Binance Announces Delisting Of Key Crypto Pairs, Brace For Market Impact
XRP is a cryptocurrency designed to facilitate fast and cost-effective cross-border payments. It is the native token of the XRP Ledger (XRPL), an open-source, decentralized blockchain developed in 2012.
XRP has struggled in the first half of 2024 as investor caution prevails due to the ongoing legal issues between Ripple and the U.S. SEC. As of the latest updates, XRP maintains a market cap of $26.3 billion, with a trading volume over the past 24 hours reaching $1.037 billion.
Current analysis of the daily charts indicates that XRP is trading at $0.47 and is testing the support trendline of a 6-year-long triangle pattern formation. Despite dynamic resistance serving as a key accumulation zone until now, the extended correction phase in Bitcoin could potentially drive the XRP price below this level.
If a bearish breakdown occurs, it could amplify selling pressure, possibly causing the altcoin’s price to drop below $0.40.
Also Read: Ethereum, Bitcoin & XRP Lead $1.5B Crypto Scam Losses, What’s Happening?
Dogwifhat (WIF) is a meme-inspired cryptocurrency launched on the Solana blockchain in late 2023. It originated from a viral internet meme featuring a Shiba Inu wearing a pink beanie hat.
The meme sector is known for its volatility, often reacting dramatically to market changes. During the market correction in June, the WIF coin dropped from its peak of $4.08 to $1.92, a decline of 53.22%.
Daily charts indicate that the falling Dogwifhat price is oscillating within two parallel trend lines, forming a channel pattern. If this pattern persists, WIF could decline another 28% before finding support at the lower trendline of the channel.
As long as the pattern remains intact, the downward trend for WIF is likely to continue.
Gala Games (GALA) is a blockchain-based gaming platform that allows players to earn cryptocurrencies and non-fungible tokens (NFTs) through gameplay.
Over the past four months, GALA’s price has exhibited a steady downtrend, characterized by the formation of falling wedge patterns. Under this pattern’s influence, the price has declined from a high of $0.086 to the current trading price of $0.025, marking a 70% decrease. As a result, the market cap has dropped to $828.2 million.
While the falling wedge pattern persists, traders might continue to sell, prolonging the ongoing correction. For buyers to regain control of the asset, a breakout above the overhead trendline is essential. This breakout could signal a shift in market sentiment and potentially reverse the current downtrend.
Key Takeaway
The Bitcoin fall below $60000 on Wednesday has renewed correction fear in the market. It seems the last two weeks were a relief rally for the crypto market, and now the selling pressure resumed. However, a strong daily candle close below $60k for BTC could offer a better signal for prolonged correction in altcoins.
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Frequently Asked Questions (FAQs)
The Fear and Greed Index for cryptocurrencies is a tool that measures the sentiments of investors in the cryptocurrency market.
In technical analysis, a triangle pattern is a chart formation that is created by drawing trendlines along a converging price range that resembles a triangle. This pattern is significant as it often indicates that a breakout is imminent.
Answer: A channel pattern in trading refers to the price movement between two parallel trendlines where the price oscillates within an upper and lower boundary. These trendlines act as support and resistance levels.
