Crypto market positivity fades after investors hit initial spike in selling pressure
recovery of cryptocurrency market Given the state of most digital assets we see today, we learned yesterday that we may be in the final stages.Even the strong price performance of assets like DOGE has strong foundations underneath. It doesn’t look like there is.
DOGE’s rise is purely speculative
Despite the massive 7% price increase we saw yesterday, Dogecoin shows no signs of a notable breakthrough and has already lost more than half of its value in today’s trading session.
The current price hike issue is the main reason behind it and Elon Musk’s acquisition of Twitter could be finalized.Earlier, some crypto enthusiasts suggested that masks would bring Doge Or another cryptocurrency to social media platforms.
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However, according to court documents, Musk believes that implementing digital assets on the platform is not a good idea given all the congestion and security issues that digital asset users face outside of mainstream platforms. increase.
Lack of basic support and questionable growth fuel make memecoin profitable quickly. This is why we see returns below the exponential moving average.
From a technical point of view, Dogecoin will continue to operate on the long-term integration channel formed in June. Longer term, DOGE has been on a sharp downward trend since 2021, and unfortunately this year he has shown no signs of reversing since April.
bitcoin rejected with resistance
bitcoin The rise to the 50-day moving average can be viewed as another attempt to break out of the downtrend that has formed since November last year. Unfortunately, the bulls were unable to push the first cryptocurrency above the critical price level.
A surge in selling pressure will most likely push the asset back towards the $20,000 threshold and back to strong support levels around $19,200. The trading volume profile suggests that digital gold is not of interest to investors as the cryptocurrency market remains unreasonably risky for investing in institutional funds.
Ethereum repeats after BTC
Despite the decoupling seen in the pre-merger period, Ethereum’s dominance has declined significantly given worsening price performance and Bitcoin’s growing dominance in the market.
Over the past 24 hours, Ethereum has lost about 1.3% of its value after failing to break out of the local resistance level reflected in the 50-day moving average. Unfortunately, Ether is stuck in his 53-day-old downtrend that started after the successful installation of his Merge update.
Unfortunately, Ethereum has shown nothing exceptional and will likely continue to fall until the market recovers overall.