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The crypto market remains under pressure with total market capitalization slipping to $2.92 trillion, driven by profit booking.
Bitcoin has fallen below $86,000, and Ethereum slipped under $3,000, signaling short-term weakness as both assets failed to hold key technical support levels.
Altcoins and memecoins have seen steeper declines than majors, reflecting higher sensitivity to market sentiment and lower liquidity during risk-off phases.
The total market capitalization of cryptocurrencies has declined to $2.92 trillion, a 4.41% drop in the last 24 hours. The sell-off is seen as a reflection of cautious sentiment among traders, who are taking profits. Derivative markets also turned cautious as investors are reconsidering amid market uncertainty. Although the trends for long-term adoption remain supportive, short-term price action across major cryptocurrencies shows clear signs of consolidation and pressure.
Bitcoin currently trades at $85,884, down 4.15% in the last 24 hours. BTC failed to sustain above $89,000-$90,000 zone and has retreated lower, confirming a short-term bearish bias.
Immediate resistance is seen at $88,700, and followed by a stronger supply zone at $91,000. On the downside, the support is around $85,800, with a wider demand range from $83,500 to $84,200, which has been a stronghold of buyers and has defended this zone aggressively.
Market data indicate that the futures open interest is falling and the funding rates are slightly negative, suggesting that the traders are reducing the leverage they have taken rather than making panic-driven exits.
Also Read: Strategy Invests $1 Billion in Bitcoin: Will It Boost the Stock?
Ethereum is currently priced at $2,918 after a decrease of 6.48% in the last 24 hours. The cryptocurrency broke below the psychological $3,000 level, confirming short-term weakness after repeated failures to break the $3,200 level.
The key resistance is around $3,050, and a sustained break above this zone could take the price towards $3,200-$3,280 range. Support is seen at $2,900, and if the selling increases, the price might go down to $2,750.
Despite the price decline, network fundamentals are still strong, with continuous validator participation and the Layer-2 scaling solutions still growing and developing.
Currently, SOL trades at $135.91, down 4.30% from the previous day. The resistance level is $140, whereas the support level is at $125.
Solana continues to see remarkable developer activity, but on the other hand, its price is still very much affected by broader market movements.
The current price of DOT is $1.88, down 5.77% over the last 24 hours. Key resistance is at $2.05, while support is around $1.75.
The Polkadot community continues to put strength on parachain development and cross-chain interoperability.
LINK is trading at $12.72, down 6.40% over the last 24 hours. The resistance level is seen at $15.80, and the support is at $11.60.
The need for decentralized oracle services remains the main driver of the long-term bullish trend.
MATIC is priced at $0.1108, a 8.02% decrease in the last 24 hours. The key resistance level is placed at about $0.118, whereas support is expected at $0.105.
Polygon is in the spotlight because of its enterprise adoption and the scaling solutions associated with Ethereum.
PEPE is currently priced at $0.000003996, down 7.10% over the last 24 hours. The resistance is at $0.00000430, and the support level is set at around $0.00000370.
PEPE remains a very speculative asset, and the sharp fluctuations are mainly due to the changes in market sentiment.
BONK trades at $0.000008590, down 6.63% over the past day. The immediate resistance level is at $0.00000920, while the support is at $0.00000800.
BONK continues to track activity within the Solana ecosystem.
Also Read: Ethereum News Today: New ETH Proposal ERC-8092 Targets Privacy-Preserving Account Links
The 4.41% drop in total crypto market capitalization signals a clear short-term reset following recent price fluctuations. Bitcoin's slide to the mid-$80,000 area and Ethereum's fall below $3,000 imply consolidation or further declines if the assets fail to sustain above those levels.
A recovery would require BTC to regain $88,700 level and ETH to rise above $3,050. In the meantime, the traders are likely to be cautious, using lower leverage and choosing specific positions.
1. Why did crypto prices fall sharply today?
The decline was mainly due to profit booking after recent rallies, falling futures open interest, and traders reducing leveraged positions amid uncertainty.
2. Is this a market crash or a correction?
This appears to be a short-term correction rather than a structural crash, as long-term adoption trends and network fundamentals remain intact.
3. What are the key levels to watch for Bitcoin now?
Bitcoin needs to reclaim $88,700 to regain bullish momentum, while strong support lies in the $83,500-$84,200 zone.
4. Can Ethereum recover above $3,000 soon?
Ethereum may recover if it holds above $2,900 and breaks back above $3,050, which could revive upside momentum.
5. Should investors buy during this dip?
Dip buying may suit long-term investors with proper risk management, but short-term traders should remain cautious due to ongoing volatility.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.
