The crypto market was hit with fresh fears on Friday which sparked another round of sell-off in Bitcoin (BTC) price. The continued pressure on Bitcoin spilled over into the Altcoin market causing the majority of these tokens to drop into the red zone.
According to a report released on May 21st by data aggregator Messari, ”This week saw one of the biggest drawdowns in recent months with the market as a whole tumbling more than 40% from its peak.” noting that the DeFi sector and smart contracts (-19%) suffered comparatively lower than the rest of the market while Web 3.0 tokens (-26%) plunged the most.
Sector Performance Breakdown, Courtesy: Messari
The data aggregator also noticed increased volatility across the board which may suggest the possibility of selling on rallies, this states ”On a 30-day rolling basis, volatility increased roughly 5% for most assets over the week. In previous weeks, volatility ranged between 5% and 9% however, volatility across the group is now above 10%. Bitcoin is the only exception with rolling volatility of 6%”.
While the cryptomarket contends with volatility strikes, cryptoanalyst, and trader, @rektcapital spoke along the lines of ”investor capitulation” which he explains thus ”As sell-side momentum accelerates, the chances of seller exhaustion increase. Become a buyer when people get tired of selling”.
Where Will the Price of Tokens Go?
Bitcoin’s price fell significantly this week, dropping to lows of $30,000 on May 19. Cryptoanalyst RektCapital states: ”The BTC weekly close will decide where BTC wants to move. A weekly close above $38K and a rally to $44K will be possible. A weekly close below $38K and a dip to as low as $32K will be possible”.
On the other hand, on-chain analytics Santiment noted that in Bitcoin’s 12+ year history, there has never been a larger spike in both raw trading volume ($126.4b) and social volume (204.6k tracked mentions) in a single week like that seen this week.
Bitcoin remains in indecisive trading while at $38,000 as of press time.
The SEC vs. Ripple case had a hearing on Friday. SEC wants Ripple to turn over documents related to legal advice it received in 2012 before the sale of its token, XRP. Attorney Jeremy Hogan also hinted “The SEC attorney let out that the Ripple attorneys told him Ripple intended to file for summary judgment on its fair notice defense in August”.
Like all digital tokens, the XRP price was struck by the bearish wave in the market, plunging to lows of $0.75 on May 19. The 60% declines from the April 14 high at $1.98 culminated in one of the worst daily declines in Ripple price history at 33.43%. The key levels for XRP to hold remain the $0.75 and $0.65 levels, from where the bulls may give the upswing another chance. However, the likelihood of consolidation in the near term remains quite high.
XRP was trading at $0.91 as of press time.
As this week’s crypto bloodbath tanked Bitcoin to lows of $30k, Holo (HOT) plunged to lows of $0.0053. HOT has been in a downside move shortly after hitting all-time highs of $0.032. Crypto analyst and trader Michael Van de Poppe enunciates the possibility of a fresh breakout on Holo (HOT) due to the seller’s capitulation.
HOT could recoup recent losses if the Altcoin market witnesses an upward correction in the coming days and weeks, technical analyst Michael Van de Poppe stated in a May 21 tweet: pointing that a decent support zone near the $0.0057 and $0.007 levels could allow bulls to target new resistance levels.
Holo’s (HOT) price was trading at $0.007 as of writing.
Shiba Inu (SHIB)
Shiba Inu price is attempting to stage a comeback after crashing sharply from May 10 all-time highs of $0.000035. The decline in SHIB price was most pronounced because all Shiba coins are owned by ordinary traders, who tend to exit their trades when market conditions change.
That said, a fundamental catalyst is needed to push Shiba back to its previous glories. Technical indicators suggest a weakening momentum with the high chances of consolidation or sideways trading in the near term. SHIB was trading at $0.0000083 as of press time, up 15.46% in the last 24 hours.
Image Credit: Messari, Shutterstock