Markets
Crypto market slowdown: reasons for the current fall of Bitcoin, ETH, SOL, XRP and DOGE
The cryptocurrency market is now facing a significant slowdown, affecting major 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 slight increase of 0.07% to $0.1477. Overall market sentiment has changed dramatically, triggering speculation about the underlying causes of this selloff.
These fluctuations notably coincide with the latest data on the US labor market, which shows the creation of 272,000 jobs in May, affecting investor confidence and expectations regarding the Federal Reserve’s interest rate policy.
Crypto Market Selloff: Causes and Outlook
Despite the sell-off, optimism remains in the market, thanks to strong inflows into Bitcoin ETFs. However, today the crypto market has seen a sharp decline, with major coins such as Bitcoin, ETH, BNB, SOL, XRP, and DOGE delisting.
The drastic change in attitude earlier this week has fueled speculation about the cause of the selloff. The market expected Bitcoin to hit a new high soon, while altcoins remained optimistic.
Reasons behind the recent crypto sell-off
The positive market sentiment seen earlier in the week, marked by significant increases in cryptocurrency prices, has abruptly reversed. A crypto market sell-off occurred on Friday, coinciding with the release of employment data from the US Department of Labor.
Even though the unemployment rate rose from 3.9% to 4% in April, the good statistics on non-agricultural employment weighed on investor confidence.
The strong payrolls report lowered expectations of a possible interest rate cut from the Federal Reserve, sparking concerns in the broader financial sector and the cryptocurrency market.
Bitcoin Price Prediction
Bitcoin is trading at $69,371, reflecting a modest 0.03% gain today. The critical pivot point lies at $68,556. Immediate resistance levels are at $69,929, $70,643, and $71,961, with support levels at $67,570, $66,620, and $65,881.
The RSI stands 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 is intact as long as it remains above the $68,556 pivot point.
Failure to maintain this level could result in significant selling pressure, pushing prices lower towards support zones.
Etheruem Price Prediction
Ethereum is currently trading at $3,683.67, up 0.19% for the day. The pivot support level, marked by the green line, stands at $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 may signal a potential buying opportunity. The 50-day EMA (Exponential Moving Average) sits at $3,780, serving as an important resistance point.
Despite the recent uptick, Ethereum remains under pressure. Sustaining above the pivot point of $3,726.4 is crucial to maintaining a bullish outlook.
A break below this level could trigger heavy selling, potentially pushing prices towards the next support levels.
Solana Price Prediction
Solana currently trading at $162.6, up 0.13% for 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 present a buying opportunity. The 50-day EMA (Exponential Moving Average) stands at $168.37, acting as an important resistance level.
Solana’s bullish outlook depends on holding the pivot point at $161.3. A break below this level could trigger significant selling pressure, pushing prices towards lower support zones.
Dogecoin Price Prediction
Dogecoin is trading at $0.1477, showing a slight increase of 0.07%. The pivot 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 stands 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 pivot point. A break above this level could shift the bias towards an uptrend, while staying below could lead to further declines.
And after?
The current market downturn has created a challenging environment for major cryptocurrencies. Crucial support for Bitcoin lies 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 near 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 Federal Reserve rate cut, contributing to the sell-off. Traders should closely monitor these key levels as a move below them could lead to significant selling pressure in the market.