Markets
Top cryptocurrencies to watch this week: ETH, BOME, HNT
Last week, volatility in the cryptocurrency market resulted in a staggering loss of $100 billion. This decline has been reflected in the global cryptocurrency market capitalization, which has declined by 4% to $2.36 trillion at the time of writing. Here are the top cryptocurrencies to watch in the coming days.
Ethereum drops below $3,000
Ethereum (ETH), the second-largest cryptocurrency, saw its value fall below the $3,000 threshold.
ETH, BOME and HNT prices – May 12 | Source: Santíment
Ethereum attempted a last-minute rally late in the week, but the strategy faltered under persistent downward pressure throughout the week.
Mirroring the previous week, ETH started this week in unfavorable shape, with a 2.37% price drop on May 5th.
After this initial drop, the asset continued its downward trajectory, experiencing three consecutive days of losses from May 8th.
During this period, Ethereum fell 5.3%, with liquidations exceeding Bitcoin (Bitcoin). However, it managed to maintain strong support at $2,935, coinciding with the lower boundary of its Bollinger Bands on the daily chart.
The decline saw Ethereum abandon the psychological $3,000 price territory, which it had only recently reclaimed at the end of last week.
After retesting the $2,935 support level on May 8, Ethereum staged a notable recovery the following day, rising 2.10% and once again breaching the $3,000 threshold.
The recovery turned out to be temporary, as a significant drop of 4.17% on May 10 completely erased these gains.
Despite efforts to recover, Ethereum faces downward pressure, remaining below the $3,000 price level. At last check, the asset fell 6.4% for the week, with a market price of US$2,934.
Lesser known altcoins like Book of Meme (GOOD) and Hélio (HNT) also recorded comparable declines.
BOME retests 26-day EMA
The only meme coin on the list, Book of Memes has also felt the impact of market uncertainty, despite its penchant for solitary gains during market crises. At the start of the week, BOME traded well above the 26-day EMA.
BOME has traded below this trend-following indicator over the past week, indicating bearish momentum. And the recovery that began last Wednesday culminated in a boost above the crucial level.
Bears have spent this week trying to get BOME below the 26-day EMA, a move that could trigger a cascade of price declines below $0.010. After retesting the moving average on May 6, BOME soared 7.89% that day, bucking the general market trend.
The bears caught up later, with a series of retests at the 26-day EMA recorded since then.
At the time of this publication, GOOD changes hands at $0.010863, trading slightly above the moving average at $0.010828. If it falls below the EMA, its last line of defense above $0.010 will be in the $0.010475 zone.
Helium sees increase in selling pressure
Helium has not escaped the broader market’s downtrend, witnessing a three-day drop similar to that of Ethereum earlier in the week. However, its losing streak led to a more substantial decline of 19.6% on May 8.
This sustained downtrend saw HNT give up the $5 price territory for the first time this month, dropping to $4.5. Despite a recovery campaign that followed on May 9, the resistance at $5 has been too potent to breach.
A retest of $5.126 on May 10 resulted in another price collapse.
Helium’s inability to reclaim the $5 level was a result of an increase in selling pressure. The Accumulation/Distribution metric has continued to decline throughout this month, falling from -3.036 million on May 1 to -3.505 million at last check.
This sustained decline points to growth in sales as market participants look to exit the market due to the downward trend.
Furthermore, Coinglass data confirms that investors have deposited $2.127 million worth of HNT on exchanges since April 30, as exchange flows record a persistent increase.