ADA is one of the coins investors’ eyes were on a few days ago as calls for altseason reached new highs. However, market sentiment is gradually changing at the time of writing.
ADA had the rest of the crypto market is seeing a massive decline in value since the day started. While trading volume increased, prices are declining as selling pressure spikes.
Nonetheless, the global cryptocurrency market is worth $3.83 trillion at the time of writing. It saw a slight recovery after its recent drop to a low of $3.78 trillion. Most cryptocurrencies saw massive selling pressure earlier on Monday.
As a result of the selloffs, the sentiment across the sector is flipping bearish. The fear and greed index is at 50, down from 56 a few days ago.
Nonetheless, the downtrend, which started on Sunday, was surprising to many as traders searched for the cause. Some X users claimed Michael Saylor hit the sell button, while others blamed the dump on a whale who sold 24k BTC. However, there is no evidence that Saylor sold, and the OG sold only 12k BTC.
The undeniable cause for the price dumps is huge selling pressure. Some coins are seeing notable pullbacks at the time of writing. Will it continue?
BTC/USD
Bitcoin dropped below $111k from $115k on Sunday. The apex coin recovered from the dip and ended the previous day with losses of almost 2%.
However, the bulls failed to continue the previous day’s recovery. BTC retraced to its low as it had another wave of massive selling earlier on Monday. The 4-hour chart shows that it lost over 2% during the first 12 hours of the day.
The apex coin is trading at $112,511 at the time of writing, indicating a recovery. Nonetheless, indicators like the relative strength index and MACD are printing buy signals. RSI is rising in response to the gradual rise in buying pressure.
If this continues, Bitcoin will reclaim $114k. Further increases will send prices above $116k in the coming days. However, the asset is not clear from the danger zone. It risks a drop below $110k if the decline resumes.
ETH/USD
Ethereum surged to its highest value on Sunday but retraced shortly after. The 1-day chart shows that it ended the day at its opening price.
However, the bears continue the selloffs on Monday, causing a massive decline in the early hours. The altcoin is yet to recover from the decline, but the 4-hour chart shows several attempts.
ETH rebounded from a drop to $4,519 and peaked at $4,684, but relapsed, and the current price shows it may approach its low again. A closer look at the moving average convergence divergence shows that it was barely affected by previous slight increases.
It continues its decline at the time of writing. This may hint at further decreases in the days ahead. Previous price movement indicates that the altcoin will retrace below $4,400 if the decline continues.
Conversely, a change in sentiment will result in the asset surging. It will look to reclaim $4,700 and $4,800 afterwards.
XRP/USD
The 4-hour chart shows the altcoin trading $2.95. A closer look reveals two other green candles with slight increases. However, the asset is yet to recover from its previous 2% drop.
Nonetheless, the relative strength index is gradually increasing, indicating that there is a slight increase in buying pressure at the time of writing.
A closer look at MACD shows an increased likelihood of further increases. The histogram currently displays almost equal bars to its previous. This may be the sign of an impending bullish convergence.
XRP will surge above $3 if the bulls sustain the current momentum. However, it may continue upward, breaking above $3.10.
BNB/USD
BNB is edging closer to fully erasing the losses it incurred earlier. The 4-hour chart shows that it dropped from $879 to $857 and is currently seeing more buying pressure, causing prices to rebound.
The altcoin trades at $865 at the time of writing. While it prints a green candle, it is an inverted hammer, which may further decline in the coming days. If this holds, the coin will drop to $850 again. It is important to keep the price above this mark as failure will result in further declines.
Nonetheless, an increase in momentum will send BNB above $880.
SOL/USD
The 4-hour chart shows that Solana is yet to make any significant progress in recovery. It retraced by over 4% earlier, dropping from $200 to $195.
While the following candles are smaller, the altcoin still grapples with notable selling pressure $195. As a result, it was locked in a range-bound movement for most of the previous 12 hours. Nonetheless, it bounced off $194 more than once during this period.
If the altcoin holds the highlighted support, it may surge higher and reclaim $200. The mark is one with notable demand concentration, and the altcoin may attempt $210. However, SOL risks further descent if it loses the support. It may drop as low as $188.
DOGE/USD
In session starting 4:00 UTC, DOGE mirrored ADA. The memecoin retraced by over 4%, dropping from $0.231 to $0219. Subsequent candles after that were also red, indicating the downtrend continues.
However, it slowed down as the buyers struggled to reclaim dominance. Nonetheless, the relative strength index points to the presence of selling pressure as it slipped lower, dropping to 38. MACD continues its decline, hinting at further declines.
A closer look at the chart shows no tough levels around $0.217, explaining the current retracement. The next key mark is at $0.208. Nonetheless, there is notable demand concentration around $0.214.
ADA/USD
ADA retraced from $0.91 to $0.87 earlier on Monday, losing over 5%. It has since struggled to recover as selling pressure remains higher.
However, there is an ongoing trend that may lead to a breakout. The altcoin is in a range-bound movement, trading between $0.88 and $0.85 for almost 12 hours.
MACD favors a breakout to a new low. Both EMAs are declining, and the histogram is printing longer bars at the time of writing. The readings from the metric tally with those from RSI, which show a slight increase in selling pressure.
With both indicators pointing to a further downtrend, the altcoin may drop to a low of $0.82 before rebounding.
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