- Cryptocurrencies crash continues
- Ethereum above $2,000 but under pressure
- Ripple bounce back stalls
- Dogecoin near all-time lows
The bigger they are, the harder they fall. That has been the central theme in the cryptocurrency market, with the biggest coins feeling the brunt of the broad market crash. After exploding at the height of the pandemic to record highs and turning amateur investors into millionaires, tables have turned amid a wide bloodbath.
Ethereum, Ripple, and Dogecoin have given up more than half of the gains registered last year as the selling pressure shows no signs of waning off. More than $200 billion being erased from the entire market in a single day underscores the strong selling pressure.
Ethereum above $2,000
Ethereum, the second-biggest digital coin, has already plunged to ten-month lows. While the coin has bounced back to the $2072 highs after plunging to lows of $1685, it remains under pressure at the start of the week.
Bulls failure to defend the $2,000 handle could result in ETHUSD plunging back to the $1680 level seen as the next critical level as part of the sell-off. The coin-finding support above the $2,000 level should fuel hope of a potential bounce back to the $2,500 level.
XRPUSD under pressure
Ripple is another coin feeling the sell-off brunt fuelled by investors shunning speculative assets in favor of safe-havens. After plunging to 16-month lows of $0.33, XRPUSD has bounced back, retaking the $0.43. However, failure to find support above the $0.45 level has left the coin susceptible to further losses.
A drop followed by a daily close below the $0.40 handle could result in XRPUSD plunging to 16-month lows at the $0.33 level. Additionally, the coin best known for enabling international payments needs to rise and find support above the $0.50 level to avert the prospect of further losses.
Dogecoin stalled and bounced back.
Dogecoin, the high-flying meme coin, has also not been spared despite being a firm favorite for Tesla CEO Elon Musk. After plunging below the $0.10 level, the meme coin remains susceptible to further losses, as is the case in the broader industry.
After bouncing back above the $0.067 level, DOGUSD has found it going tough above the $0.090 level. A stalled bounce back at the start of the week might as well be an early signal of a potential pullback to all-time lows at the $0.067
Why are Ethereum, Ripple, and Dogecoin bearish?
Ethereum, Ripple, Dogecoin, and other cryptocurrencies are under immense pressure as investors flee riskier assets in response to the sell-off in the stock market. Fears of soaring inflation levels and deteriorating economic outlook have left investors with no choice but to avoid speculative assets that remain vulnerable to any negative news or development.
In addition, the capitulation of embattled stablecoin Terra has also sent jitters in the cryptocurrency market. Its implosion to less than 30 cents has shaken investors’ confidence in the so-called decentralized finance space.
Inflationary pressures that show no signs of slowing down despite central banks hiking interest rates are other headwinds affecting Ethereum, Ripple, and Dogecoin sentiments in the market. The prospect of the Federal Reserve hiking interest rates by an additional 0.5% in June has already sent the dollar to two-decade highs against the majors, all but pilling pressure on cryptocurrencies. The prospect of higher interest rates triggering recession has also forced investors to be extremely cautious.
Ethereum, Ripple, and Dogecoin look set to remain under pressure after a stalled breakout. The coin’s failure to hold above key support levels heightens the prospect of additional losses as the recent bounce back acts as an incentive for short sellers to short the market.