U.Today – has lost its footing around $55,000, triggering one of the largest sell-offs in the history of the cryptocurrency market. Considering the dire situation we are in, it is important to find and highlight the threshold that could act as a basis for a reversal in the foreseeable future.
Bitcoin's first significant support level is likely to be found between $52,000 and $50,000. Due to the psychological effect of the round number, this range is important. Furthermore, historical evidence indicates that this range has previously functioned as both resistance and support, making it crucial for a potential reversal.
Looking at the weekly chart, we can see that the $47,000 level is critical. This level is in line with the weekly EMA 200 and relates to a previous consolidation phase. According to many, the EMA 200 is a long-term support level, and a bounce from this mark could give Bitcoin the momentum it needs to start rising again.
If Bitcoin falls from this level, it could signal a more significant correction. The next notable support zone lies in the $42,000–$40,000 range. Historically, this region has served as a strong support level and the basis for significant corrections. Its importance is increased by the fact that the 200 EMA on the daily chart is also located in this range. Holding this level could stop further significant declines and even pave the way for a rebound.
Toncoin's biggest drop
Toncoin (TON) experienced arguably the largest price drop in percentage terms in 48 hours. The Telegram-backed asset lost around 20% of its value and fell from roughly $8 to $6.6, losing virtually all of the gains it had made since the beginning of the month.
There are several reasons for the sudden drop in Toncoin’s value. Firstly, several cryptocurrencies have seen massive sell-offs as a result of the overall bearish sentiment in the market. The market has been negatively impacted, including Toncoin, as a result of Bitcoin’s recent drop below crucial support levels.
According to an analysis of technical indicators, TON price has broken above the 50 EMA and is currently hovering around the 100 EMA. While there have been strong support levels at this level in the past, there are concerns that they may not hold this time due to the severity of the recent sell-off.
Additionally, there has been a notable decline in the Relative Strength Index (RSI), suggesting that Toncoin is approaching the oversold zone. Prices may continue to decline despite the possibility of a brief rally due to the overall bearish momentum.
The unexpected source of strength
The only thing that would not be expected in the midst of this catastrophic market crash is the strong bullish movement of one of the assets that should have followed the market more than the others. Solana is showing positive dynamics against , which could be a signal that should not be ignored.
Considering the overall market pessimism, Solana’s recent performance is impressive. Solana has managed to gain 8% during substantial declines of major assets like Ethereum and Bitcoin.
This suggests that there may be underlying bullish factors and that investor sentiment is strong. Looking at the daily chart, Solana is now targeting the 100-day EMA after breaking above its 50-day EMA, a crucial resistance level. This uptrend is especially notable because it stands in stark contrast to Ethereum’s downward trajectory.
Additionally, there appears to be more buying pressure and momentum supporting Solana’s price action, as indicated by the rising Relative Strength Index (RSI). However, it is important to note that Solana continues to lose value against the US Dollar.
This article was originally published on U.Today
