Markets
Crypto Market Slowdown: The Reasons Behind the Current Drop in Bitcoin, ETH, SOL, XRP, and DOGE
The cryptocurrency market faced a significant downturn today, impacting key assets such as Bitcoin, Ethereum, Solana, XRP, and Dogecoin. Bitcoin (BTC) is trading at $69,371 with a slight gain of 0.03%, while Ethereum (ETH) is at $3,683.67, up 0.19%.
Solana (SOL) is priced at $162.6, up 0.13%, and Dogecoin (DOGE) shows a small increase of 0.07% to $0.1477. General market sentiment has changed drastically, triggering speculation about the underlying causes of this sell-off.
Namely, these fluctuations coincide with the most recent data from the US labor market, which reported an increase of 272,000 jobs in May, affecting investor confidence and expectations regarding the Federal Reserve’s interest rate policies.
Crypto market liquidation: causes and prospects
Despite the sell-off, optimism remains in the market thanks to strong Bitcoin ETF flows. However, today the crypto market suffered a sharp drop, with major coins such as Bitcoin, ETH, BNB, SOL, XRP and DOGE retreating.
The dramatic change in attitude earlier this week has spurred speculation about the cause of the sell-off. The market expected Bitcoin to reach a new high soon, while altcoins remained bullish.
Reasons behind the recent crypto sell-off
The positive market sentiment seen at the beginning of the week, marked by significant increases in cryptocurrency prices, has abruptly changed. On Friday, a massive sell-off occurred in the crypto market, coinciding with the release of employment data from the US Department of Labor.
Although the unemployment rate rose to 4% from 3.9% in April, strong statistics on non-agricultural wages weighed on investor confidence.
The robust payroll report lowered expectations of a potential interest rate reduction by the Federal Reserve, raising concerns in the broader financial sector and cryptocurrency market.
Bitcoin Price Prediction
Bitcoin is trading at $69,371, reflecting a modest gain of 0.03% today. The critical pivot point is at $68,556. Immediate resistance levels are at $69,929, $70,643 and $71,961, with support levels found at $67,570, $66,620 and $65,881.
The RSI is at 35, indicating a neutral market position. The 50-day EMA is positioned at $70,176, which acts as a resistance barrier. Bitcoin’s uptrend remains intact as long as it remains above the $68,556 pivot point.
Failure to maintain this level could result in substantial selling pressure, driving prices downward towards support zones.
Ethereum Price Prediction
Ethereum it is currently trading at $3,683.67, up 0.19% on the day. The main support level, marked by the green line, is $3,726.4. Immediate resistance levels are identified at $3,933.1, $4,060.2 and $4,180.7, while support levels are at $3,596.2, $3,493.0 and $3,389.9 .
The RSI (Relative Strength Index) is at 30, indicating that Ethereum is near oversold conditions, which could signal a potential buying opportunity. The 50-day EMA (exponential moving average) is at $3,780, serving as a significant resistance point.
Despite the recent small increase, Ethereum remains under pressure. Staying above the $3,726.4 pivot point is crucial to maintaining a bullish outlook.
A break below this level could trigger sharp selling, potentially pushing prices towards the next support levels.
Solana Price Prediction
Solana it is currently trading at $162.6, up 0.13% on the day. The critical pivot point is set at $161.3. Immediate resistance levels are at $164.2, $166.6 and $169.8, while support levels are at $157.3, $152.8 and $149.8.
The RSI (Relative Strength Index) is at 28, indicating that Solana is approaching oversold territory, which could represent a buying opportunity. The 50-day EMA (exponential moving average) is at $168.37, acting as a significant resistance level.
Solana’s bullish outlook depends on maintaining the pivot point at $161.3. A break below this level could trigger substantial selling pressure, driving prices towards lower support zones.
Dogecoin Price Prediction
Dogecoin is trading at $0.1477, showing a slight increase of 0.07%. The main support level is marked at $0.1493. Immediate resistance levels are identified at $0.1540, $0.1587 and $0.1649 while support levels are at $0.1444, $0.1399 and $0.1359 .
The RSI is at 19, indicating that Dogecoin is in deeply oversold territory, suggesting that a potential reversal could be on the horizon. The 50-day EMA is positioned at $0.1579, serving as a resistance point.
Dogecoin’s bearish outlook prevails below the $0.1493 midpoint. A break above this level could change the trend upwards, while remaining below could lead to further declines.
What is the next?
The current market downturn has created a challenging environment for major cryptocurrencies. Bitcoin’s main support is at $68,556, with potential resistance at $69,929 and above. Ethereum remains under pressure despite trading at $3,683.67 with crucial support at $3,726.4.
Solana price at $162.6 is close to its critical pivot of $161.3, and Dogecoin, priced at $0.1477, faces significant resistance at $0.1493.
The strong U.S. jobs report dampened expectations of a rate cut from the Federal Reserve, contributing to the sell-off. Traders should closely monitor these key levels, as breaking below them could lead to substantial selling pressure across the entire market.