Subsequent to demonstrating a mini-rally on July 18, the crypto market has declined by $12 billion, triggered by a large drop in the value of tokens.
Since Wednesday, bitcoin, the most dominant cryptocurrency in the market, has performed relatively well against the US dollar. Its volume, which remained below $3.5 billion last week, has rebounded to $5.2 billion, and tripled on the global market’s largest crypto exchange Binance.
As of July 20, the price of bitcoin remains above the $7,470 mark, down less than 1.5 percent from its weekly high at $7,570.
But, other major digital assets such as Bitcoin Cash (BCH), Ripple (XRP), Ether (ETH) and Cardano (ADA) have performed poorly against both bitcoin and the US dollar, dropping by over 5 percent in the past 24 hours.
Ripple, in particular, has struggled to sustain any momentum from its slight increase in value on July 18, while others have managed to at least hold their support levels.
Since July 19, the price of XRP has been in free fall, dropping from $0.52 to $0.46, by more than 11.5 percent. After recording a large sell-off on major exchanges less than 48 hours ago, XRP has not been able to demonstrate signs of recovery in the short-term.
The short-term trend of XRP will likely remain negative in the upcoming days, as the sell-off on July 19 was not sufficient to reverse the Relative Strength Index (RSI) of XRP and create an oversold condition for the Ripple exchange market. The Average Directional Index and various momentum indicators show that the downtrend of XRP is simply too strong at the moment to initiate any sort of corrective rally by the end of this week.
Some investors have said that the slight decline in the price of bitcoin and the valuation of the crypto market was expected, given the sudden surge in the price of bitcoin on Wednesday, which saw a 10 percent rise within a 30-minute window.
In early April, when the price of bitcoin surged by over 10 percent from $6,900 to $8,000, its rally continued to the $10,000 resistance level, which it failed to surpass and ultimately fell below the $6,000 mark two months after.
In a sideways market, especially when the price of bitcoin remains stable, tokens tend to perform exceedingly well against major digital assets.
However, even tokens such as 0x (ZRX) and Aelf (ELF), which have demonstrated strong momentum throughout July, have recorded 10 percent losses over the past 24 hours.
ELF, in particular, saw a 10 percent fall from 0.00011 BTC to 0.000092 BTC, after reaching a weekly high at 0.000127 on July 5.
One positive takeaway from the performance of the crypto exchange market this week is its strong volume that has rebounded well since last week, and if the volume of the market can be sustained, a movement to the upside can be expected by the end of the week.
Featured image from Shutterstock.
Last modified: March 4, 2021 4:04 PM