- Bitcoin falls below a crucial support level of $43,000.
- Ethereum retraces to under $3,200 in a struggling market.
- SOL shed 3.50%, AVAX and LUNA also posted red candles
- Decentraland’s MANA unexpectedly gains over 15%, Atom, ONE, and LINK follow.
The cryptocurrency market is known to experience different bear and bull run phases. The trillion-dollar sector promises trading and investing potential for people living all across the world. Moreover, digital coins or tokens as a payment and transaction gateway are becoming increasingly popular. The usability of crypto makes it an automatic choice for public use in the modern world.
The start of 2022 was quite surprising for the cryptocurrency market. Even though the sector had a mixed year, it gained some momentum in the last two months. However, fear and uncertainty clouded the market in the holiday season, and the market has been unable to move up since then. A prevalent bearish trend ensured a bloodbath in the cryptocurrency market over the last day.
Bitcoin slides below $42,000 – what is next?
Bitcoin is still the leading and most valuable cryptocurrency asset in the world. Even though its dominance has received a dent, it is still around 39.60%. Therefore, the performance of Bitcoin is highly crucial in every single aspect. The overall market depends significantly on how Bitcoin performs in terms of value.
Over the last day, Bitcoin dropped majorly after recording repeated red candles. It went down from a value around $46K to a mark below $42K for the most part. The coin has lost over 12% in a weekly price change, as it is priced around $41,500 at the time of writing. The coin’s market cap is severely low at around $790 Billion, and its 24-hour trading volume is a little over $30.75 Billion. Bitcoin is crashing through all support levels, and it might be one of the most significant setbacks for the coin in recent years.
ETH consolidates to $3,200 with a 7.60% depreciation
Despite gaining more adoption and recognition than Bitcoin, ETH has suffered majorly in the recent crash. At the end of last year, Ethereum was making new all-time highs near the $4,800 mark. However, since then, the coin has not crossed $4K. The recent crash has ensured that ETH falls back to around $3,200 with an 8 % price decrease. As of now, ETH stands at approximately $3,190.
The market cap of Ethereum has dropped below $381 Billion, and its trading volume is also under $25 Billion. Investors and traders seem to be pulling their money out of the leading altcoin. However, some experts believe that ETH gives an ideal buying opportunity for investors. Nonetheless, the coin has been down by over 15% in the last seven days, and this cannot be deemed an ideal situation for its community.
SOL among top losers, as LUNA and AVAX lead
Solana is one of the most sought-after cryptocurrency assets in the world. Over the last year, it has performed incredibly well to reach new highs and gain the limelight it deserves. It is marked in the list of losers quite occasionally. However, with a sharp decrease of over 8% in one day, and a drop of over 20% in weekly changes, SOL has shown glimpses of a major bear run.
At the time of writing, SOL is priced at around $137. The market cap and the trading volume of the coin have also suffered a huge blow in the meantime. This shows that Ethereum as well as its competitors are also struggling to have a say in the market. The bleeding is worsening with every passing minute since the last day or so.
SOL is not the only big name that has lost a significant part of its value. The previous high performers, AVAX and LUNA, have also managed to drop severely in prices. Avalanche (AVAX) is down by almost 8% to fall below $86. Its weekly tally of crashing prices is over 17% now. The coin touched its all-time high of over $145 a few weeks ago. Therefore, it shed a major part of its gains.
Moreover, LUNA was another high performer in the last quarter. It has also shed about 19.70% in weekly losses, and its price is down to $69 after topping at the anticipated $100. On the other hand, BNB came down to around $444, UNI and ALGO have shed over 6%. No other coin in the top 20 cryptocurrencies has recorded any positive results.
MANA and ATOM gain almost 15%, ONE and FTM also stay positive
In the last quarter of 2021, there was a lot of hype around metaverse and play-to-earn gaming tokens. This hype led to the rise of coins like GALA, MANA, SAND by a significant margin. All of them reached new levels of valuation and adoption. However, once the hype diffused, they were not posting any major positives in the market. They were also shedding their value to some degree.
However, in the last 24 hours of trading, MANA has progressed by 15%. In a breakthrough rally, MANA was able to cross $3.20. The coin has also managed to cover a major part of its last week’s losses. It is now only 3% below its previous week’s price. This ensures that the coin finishes the first week of the new year on a high note.
Only a handful of coins have managed to stay green in this market bloodbath. However, ATOM could also gain almost 15% and cross $41.70 in the market. Its weekly price increase tally is up to a mammoth 34%. It shows that the coin has stayed bullish for a long time, and it is pumped up even in an uncertain time of the market.
Lastly, FTM and ONE were the two coins that stayed positive overnight. They do not have significant gains to boast about, but they were able to stay on top while other tokens continued to bleed. FTM is now valued at over $2.75, and Harmony’s ONE is trading over $0.28 in the market.
This current phase of the market has inflicted fear of loss among investors and traders. With a sharp decrease in the prices of major currencies, many traders hit their stop losses over time. The global crypto market cap also continues to decrease, which means people are pulling out their investments which is not a healthy sign. It is yet to be seen if Bitcoin and other tokens manage to get up or not in the coming hours. The market will only have a set pattern and trend to follow upon.