ambcrypto.com
The broader crypto market is declining, and the trending tokenization narrative is also suffering. For instance, Centrifuge [$CFG], a leader in this sector, lost 14% of its cap in a day.
Token volume for RWA issuers plunges
For Centrifuge, the total token trading volume is down by 7.5% in the past 30 days, reaching around $685 million. On the day, only $15 million in $CFG was traded, more than four times less than its May peak volume of $64 million.
Moreover, the token trading volume of all RWA issuers declined from $1.406 billion to this month’s low of $198 million. The peak token volume of the sector was about $6 billion. However, this figure has slightly recovered to around $424 million.
As such, this number indicates broader market weakness in the RWA sector.
Still on Centrifuge, most of the metrics were down by double digits. For instance, the asset market cap is down by 15% to around $1.30 billion despite holders continuing to increase.
Moreover, daily asset senders on Cenrifuge have declined by 42% to 4. But they remain up by 38% this month. However, the figures are not impressive, given Centrifuge’s position among RWA issuers.
The transfer volume of assets deployed on Centrifuge was also down by 43% in the last 30 days. It reached $1.20 billion, with JTRSY leading the decline to around $870 million.
Where are $CFG bulls likely to return?
On the charts, Centrifuge lost the slanting support level and confirmed the trendline break with a retest. Since then, $CFG has dipped by more than 32% and continues to decline.
Since $CFG price flipped the Supertrend indicator to bearish on the 22nd of May, bears have dominated even the small pumps to the upside. Its price is way below the indicator, indicating bear dominance over buyers.
As the altcoin continues to break below key demand levels, the RSI is dipping alongside it. As of press time, the RSI was oversold and at 23.45 but was showing signs of reversal.
A confirmed retest of the breakdown, after breaking below the $0.20 level, would indicate further decline.
A confirmation leaves the $0.12-$0.14 zone as the last viable demand zone where bulls may return. It was the area that originated the rally that pushed $CFG to a peak of $0.35.
If market participants disrespect the last demand area, it may drop to a launch price of $0.0997. For now, if the $CFG price rises and stays above $0.20, the downtrend may pause.
Final Summary
- Centrifuge drops 14% in a day as RWA issuers’ monthly token volume plunges to $198 million from $1.406 billion.
- $CFG price breaks below key demand levels as momentum indicators confirm sellers’ strength.