The recentdropofBitcoinbelow$60Khasledtosignificantmarketliquidations,raisingconcernsaboutthepotentialdeclineofthreespecificaltcoins:XRP,Cardano,andSolana.
Points
- Bitcoin’sfallbelow$60Ktriggersmarketliquidations.
- XRP,Cardano,andSolanaareatriskofsignificantdeclines.
- Decreasedtradingvolumesindicatereducedbuyerinterest.
DecreasedDemandSignalsBTCPriceFall
AnSD-Wavecould mean that prices would be cut by as much as20-30%,while anSSD-Wavecould mean that prices would be cut by50%.Recent chart data have indicated a probability of anSSD-Wave,which has restricted a cautious approach toinvestors.TheBTC/USDchart shows that the trading volume gradually decreased over the past fourmonths,which signals a decrease inbuyers’interest.
Source: AlanSantana/TradingView
This weakens the demand at the current price level（presstime）,which may imply more falls in thefuture.The current negative overall perception and decreasing trading volume can cause the current levels of support to bebroken,leading to furtherdepreciation.The price action is stillbearish,as the downward trendline is stillintact,and the price cannot overcomeit.
Bitcoin’sPriceSupportLevelCrucialat$57,500
The preceding primary support level was around$57,500in March2024,which has served as support in the past and can potentially arrest a significantdrop.But breaking this level would indicate a worsesituation.The projected level based on altcoin correlations is around$40,000;thus,Bitcoin may follow thetrend.
Such a drop to this level would signal a severe market decline that may lead to more declines in the cryptocurrencymarket.The$35,000support level of January2024is an essential historical level that may be tested in case of anSSD-Wave.Going below this level would indicate along-termbearishmarket.
Source: AlanSantana/TradingView
XRP,Cardano,SolanaTiedtoBitcoin’sFate
The current market outlook remainsuncertain,withBitcoin’spotential downturn casting a shadow over the entire cryptocurrencymarket.The correlation between Bitcoin and altcoins likeXRP,Cardano,and Solana suggests that a significant downturn in Bitcoin could also lead to substantial declines in thesealtcoins.
Here’sa briefer on the price charts of these cryptos at presstime:
XRP is trading at$0.4662,a decrease of3.19%within24hours.Despite its market capitalization of$26.71billion and trading volume of$662.28million,XRP is still relevant incross-borderpayments and financialinstitutions.Nevertheless,XRP is closely connected to Bitcoin and may fall withit,which is apossibility.
Cardano,at$0.4062,has registered a dip of1.60%in the lastday.Thecoin’smarket capitalization is$14.63Billion,while its trading volume is$286.61Million.Cardano’scurrentgrowth,inparticular,is still based on the principles of scalability andinteroperability.For thisreason,Cardano remains sensitive to the fluctuations of the Bitcoinmarket.
Solana is trading at$141.77and has remained relativelyflat,with a4.98%downturn in the lastday.It has a market capitalization of$6883billion with a trading volume of$193billion.Lauded for its fast speeds and lowfees,Solana draws in developers and projects and thus has a stable performance linked toBitcoin’sprice.
The current market situation is relativelyunstable,withBitcoin’spossible decline affecting the whole cryptocurrencymarket.The relationship between Bitcoin and other digital currencies such asXRP,Cardano,and Solana means that if Bitcoin is likely tofall,the altcoins are also expected to drop invalue.