Crypto Market Downturn: The Reasons Behind Bitcoin, ETH, SOL, XRP, and DOGE’s Slump Today
The cryptocurrency market faced a significant downturn today, impacting 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) stands at $3,683.67, up 0.19%.
Solana (SOL) is priced at $162.6, rising by 0.13%, and Dogecoin (DOGE) shows a minor increase of 0.07% to $0.1477. The overall market sentiment has shifted dramatically, triggering speculation on the underlying causes of this selloff.
Notably, these fluctuations coincide with the latest U.S. labor market data, which reported an addition of 272,000 jobs in May, affecting investor confidence and expectations for Federal Reserve interest rate policies.
Crypto Market Selloff: Causes and Outlook
Despite the selloff, optimism remains in the market, thanks to strong Bitcoin ETF inflows. However, today the crypto market experienced a severe decrease, with major coins such as Bitcoin, ETH, BNB, SOL, XRP, and DOGE retreating.
The dramatic shift in attitude from earlier this week has spurred speculation about the cause of the selloff. The market had expected Bitcoin to reach a new high soon, while altcoins remained bullish.
Reasons Behind the Recent Crypto Selloff
The positive market sentiment observed earlier in the week, marked by significant price increases in cryptocurrencies, has abruptly shifted. On Friday, a major crypto market selloff occurred, coinciding with the release of the US Labor Department’s job data.
The report showed that the United States added 272,000 jobs in May, surpassing market expectations and the previous month’s numbers.
Although the unemployment rate rose to 4% from 3.9% in April, the strong non-farm payroll statistics have weighed on investor confidence.
The robust payroll report has lowered expectations of a potential interest rate decrease by the Federal Reserve, raising concerns in the broader financial sector and the cryptocurrency market.
Additionally, GameStop’s (GME) decision to sell $175 million in shares, which led to a 40% drop in its stock price, has added to the market’s anxiety.
Bitcoin Price Prediction
Bitcoin is trading at $69,371, reflecting a modest gain of 0.03% today. The critical pivot point is at $68,556. Immediate resistance levels are at $69,929, $70,643, and $71,961, with support levels found at $67,570, $66,620, and $65,881.
The RSI stands at 35, indicating a neutral market stance. The 50-day EMA is positioned at $70,176, which acts as a resistance barrier. Bitcoin’s bullish trend is intact as long as it stays above the $68,556 pivot point.
A failure to maintain this level could result in substantial selling pressure, driving prices down towards the support zones.
Etheruem Price Prediction
Ethereum is currently trading at $3,683.67, up 0.19% for the day. The pivotal 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 nearing oversold conditions, which may signal a potential buying opportunity. The 50-day EMA (Exponential Moving Average) is at $3,780, serving as a significant resistance point.
Despite the recent minor uptick, Ethereum remains under pressure. Sustaining above the pivot point of $3,726.4 is crucial for maintaining a bullish outlook.
A break below this level could trigger sharp selling, potentially pushing prices towards the next support levels.
Solana Price Prediction
Solana is 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 a significant resistance level.
Solana’s bullish outlook is contingent on maintaining the pivot point at $161.3. A break below this level could trigger substantial selling pressure, driving prices towards the lower support zones.
Dogecoin Price Prediction
Dogecoin is trading at $0.1477, showing a slight increase of 0.07%. The pivotal 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 a potential reversal may 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 to bullish, while remaining below could lead to further declines.
What’s Next?
The current market downturn has created a challenging environment for major cryptocurrencies. Bitcoin’s pivotal support is 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’s 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 has dampened expectations for a Federal Reserve rate cut, contributing to the selloff. Traders should closely monitor these key levels, as breaking below them could lead to substantial selling pressure across the market.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals