For a few hours now, the cryptocurrency market seems to be entering a phase of correction. The sector marketcap has also just dropped 5.75% over the last 24 hours.
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Decrease in the price of Bitcoin, Ethereum, Cardano, Polkadot or even Solana. This Wednesday, the main blockchain projects see the price of their tokens unscrew on the markets. Is it sustainable? Should we fear a generalized correction phase? These two questions will guide us throughout this article.
The Top 100 in the Red!
Among the top 100 crypto by the marketcap, only 8% of projects show progress over the last 24 hours. The other 92 projects are in the red, at more or less high levels. NEAR Protocol (NEAR), the biggest drop in the top 100, shows a drop in the price of its token of more than 15%. We are also close to 15% loss in 24 hours for projects like The Graph (GRT) or Internet Computer (ICT).
For its part, the top 10 is displayed entirely in the red, with the exception of stablecoins which show a linear price. Here is the detail as we write these lines:
- Bitcoin (BTC): – 5.52%
- Ethereum (ETH): – 4.30%
- Binance Coin (BNB): – 5.63%
- Cardano (ADA): – 7.70%
- Solana (SOL): – 6.96%
- XRP (XRP): – 7.81%
- Polkadot (DOT): – 3.92%
- Dogecoin (DOGE): – 10.93%
As usual, the price of Bitcoin seems to have an influence on the entire cryptocurrency market. And this is quite normal in view of its weight on the world of cryptos. Currently, Bitcoin weighs for around 45% of the sector’s overall marketcap.
The most famous cryptocurrency is also in decline since its ATH on October 20. An ATH over $ 67,000. In the morning, the BTC came to test the psychological threshold of 60,000 dollars. A barrier which gave way causing the price of the asset in a more pronounced drop to 58,300 dollars. Investors are therefore now watching the $ 60,000 mark. If Bitcoin were to stay below this threshold for too long, this could jeopardize its longer-term bullish momentum.
A look back at a sumptuous year 2021
If the proverb considers that after the rain comes the good weather, the crypto market could prove to us that the reverse is also often true. The following graph shows the evolution of the global market cap over the year 2021:
Another explanation for this phase of correction could be identifiable thanks to this graph. In fact, we have reached a market cap level close to that of May 2021. This may make some investors hesitant.
Shiba Inu (SHIB) is resisting!
The Shiba Inu token meme appears to be one of the few to resist. While the Dogecoin is showing a decrease (-11%), the Shiba is showing an increase of 19% over the last 24 hours. Among the top 100, this is also the strongest progression if we put aside the 1inch Network project which has just entered this ranking thanks to its progression of nearly 40% over the last 24 hours.
Coupled with the increase in recent days, the marketcap of the Shiba Inu project is closer than ever to that of Dogecoin. While the gap was over 15 billion a few days ago, it is narrowing. Today, less than 10 billion dollars separate the marketcap of Dogecoin from that of Shiba Inu. For respective values of 31.5 and 22.1 billion dollars. During the month of October, the price of Shiba Inu increased by more than 700%. Are we going towards an inversion of the hierarchy between these two cryptos? Some answers to the next episode!
A Sustainable Decline?
For the moment, difficult to say. Indeed, a trend reversal systematically begins with a correction that could not be more classic. In a very concrete way, several elements and psychological thresholds will have to be monitored for the global cryptocurrency market. To maintain the positive bullish momentum, it will then be necessary that Bitcoin quickly returns above the $ 60,000 mark. Otherwise, a longer correction could occur.
Same case for the price of Ethereum, currently at the edge of 4000 dollars. If the asset were to stay below this level for too long, it could impact the entire cryptocurrency market.
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