Indeed it is a bloody Thursday in the cryptocurrency market. Most digital assets are drowning in the sea of red following the latest selloff that commenced at the opening of the session and continued into the Asian trading hours. The entire market is down 8% on the day after the total market capitalization deflated from yesterday’s $217 billion wiping off a clean $16 billion to the current $201 billion.
The larger cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) have been hit head on by the bear wave. Bitcoin is down 4.41%, Ethereum is recording losses more than 11% and still counting while Ripple is the worst hit among the three with a drop of 13.32%.
Dogecoin is not spared from the current cryptocurrency carnage. In fact, the crypto is still struggling with rising selling pressure. The consolidation that dominated the market following the slight recovery towards the end of September has proved to have been harboring bear pressure. Besides, the slide seems to have opened the Pandora box and bulls are left to either scatter or join hands and establish a support.
Dogecoin opened the trading in October at $0.006. This was a slight decline from the highs in September around $0.007. Consequently, the trading in the last two weeks has been trimming the gains, although nothing that serious. However, the overarching declines on Thursday have led to the smashing of the 38.2% Fib retracement level with the last swing high of $0.0061 and a swing low of $0.00509.
The drop is still unstoppable at $0.0052 but the 23.6% Fib level appears to be a viable support area. The RSI is staring into the oversold region while the DMI is heading slightly to the south to show that the bears still have the control. The bulls will have to defend the Fib support in order to plan a retracement heading to the broken support at $0.0055.
As mentioned above, Ethereum and the two other top three cryptos have received the hardest beating of the day. Ethereum, for example, could not find support at $220, $210 and $200 levels; all of which have stopped declines during previous drops. However, the drop below the tringle support continued below $200 and tested the now short-term but vital support at $195.
There is light at the end of the tunnel because due to the bullish retracement that is happening at the time of writing. ETH/USD is hammering on $200 resistance eager to break above this level and reclaim the broken support areas at $210 and $220.
Applied indicators like the RSI and the stochastic continue to send bearish signals. Significantly, the support at $195 is strong to hold until the next session but a recoil above the $200 resistance will definitely pave the way for more gains.
Binance Coin (BNB)
Binance Coin (BNB) had embarked on a sustained upward roll since mid-September. The price was trading higher highs and higher lows within an ascending channel. The upside was, however, limited at $10.8 giving sellers an open door to explore. In the past two days, BNB/USD has been correcting slightly lower, although the bulls were sitting tight above $10.2 stopping any declines below the channel support.
The widespread bear pressure in the market today has not only broken the bullish channel support, it has also led to a dip below $10.00. The 23.6% Fibonacci retracement with the last upswing of $10.9 and a downswing of $9.34 gave in to the bear beating. However, the next support target at $9.4 stayed in position preventing further breakdown.
At the time of press, BNB/USD is changing at $9.61 in a weak bullish recovery from the support. There is resistance to be encountered at $9.8 the broken support at $10.00 and the upper supply zone at $10.9. The trend is turning bullish while indicators like the RSI and the stochastic are beginning to make a comeback from the oversold levels.