Investors in the market are wondering when this dive will hit rock bottom and reverse the trend. In the last 7 days, $43 billion has been lost in a market that has been narrowing since the year started. In other words, more than $600 billion has been lost in 2018’s crypto carnage. The current declines have been linked to the ongoing harsh civil war in the Bitcoin Cash community. Two tokens were birthed in last week’s hard fork; Bitcoin ABC and Bitcoin SV. While these tokens have already started trading of certain exchanges such as the US-based Kraken, the war in the community continues to send jitters in the market. Bitcoin is said to be overreacting to Bitcoin Cash troubles and dragging the entire market of altcoins with it.
Zcash price has not been spared by the overpowering drop in the market. In fact, at the time of writing, the digital asset has corrected lower 11.57% in a period of 24 hours. The declines began afresh on Monday following a weekend of nursing the loses started early last week. Zcash maintained the support at $104 and even attempted a correction brushing shoulders with $116. However, a reversal cancelled the minor progress with ZEC/USD diving below $100.
A base support has been established at $96 and the ongoing bullish move has reclaimed position above $100 with Zcash exchanging hands at $100.13. The death cross show by the 100 SMA crossing below the 200 SMA on the 2-hour chart, suggests that a recovery will be a difficult task but not an impossible one. Besides, the stochastic has changed direction after Zcash hit the oversold levels, 5.62, although it has recovered above 30.00.
The hard fork on Bitcoin Cash saw the assets market capitalization ripped in two between Bitcoin SV and Bitcoin ABC. Stellar has now become the 4th largest crypto in the market, currently valued at $4.3 billion. Stellar had recently dethroned EOS from the 5th position. The widespread declines in the market for the second week in a row have seen Stellar trim the gains it had accrued in the last few weeks. Stellar price had corrected towards $0.3 but formed a high at $0.285 before embarking on the downstream journey. A support established at $0.225 drew the line in the sand for Stellar.
However, the bearish flag pattern formed over the weekend became a trigger for the declines on Monday. Stellar sharply descended to the above mentioned support, $0.225 and has since remained range-bound below $0.24. It is important that this support is protected otherwise, we could see another breakdown below $0.20.
This another asset that has been in a downtrend with no chance of recovery for the last two months. The recent declines are only poking in a fresh wound, let alone the fresh declines that kicked off the week yesterday. Moreover, VET/USD keeps moving far below the highs traded in November at $0.01152. Several support levels have been broken this month alone at $0.01 and $0.008, besides the next support target is barely holding water.
VeChain price is trading at $0.0061 below both the 100 SMA and the 200 SMA. The short-term SMA is below the 200 SMA while the gap between them widens to show that a reversal will not come easy. However, if the entire market can find balance starting with Bitcoin, we could see a retracement in VeChain as well. Meanwhile, the bulls have to defend the support at $0.006 and push for gains above $0.01 for VeChain to come out of the bear streak.