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The total crypto market cap (TOTAL) and Bitcoin (BTC) took a minor hit today as the former fell by $29 billion. The drawdown which extended to the altcoins resulted in Plasma (XPL) falling by 19.6% in 24 hours.
In the news today:-
- The SEC and FINRA are investigating over 200 firms with crypto treasuries for potential insider trading tied to unusual stock activity. Regulators flagged sharp price gains and trading spikes before public announcements, as more companies follow MicroStrategy’s aggressive crypto accumulation strategy.
- Kazakhstan’s financial crime agency shut down the RAKS crypto exchange, freezing 67 wallets with nearly 10 million USDT. The platform was tied to $224 million in darknet-linked laundering, with flows connected to post-Hydra Russian-language markets like Mega, Blacksprut, and Solaris.
The Crypto Market Takes A Hit
The total crypto market cap slipped by $30 billion in the last 24 hours, settling at $3.85 trillion. While not a major correction, the decline signals a pause in the market’s strong upward momentum. This cooldown may allow traders to reassess conditions before the next potential move.
Despite the pullback, TOTAL remains above its $3.81 trillion support while trading below $3.89 trillion resistance. Market stability at these levels indicates resilience. If sentiment improves and inflows strengthen, TOTAL could regain bullish momentum, paving the way for another attempt to climb higher in the near term.
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If conditions deteriorate, the risk of a breakdown remains. A drop below $3.81 trillion could trigger further declines, pushing TOTAL toward $3.73 trillion. Such a move would likely dampen investor optimism.
Bitcoin Is Holding On
Bitcoin is trading at $114,224, holding steady just under the key resistance level of $115,000. The crypto king has not faced significant losses today, reflecting resilience despite broader market uncertainty.
If investor sentiment stabilizes, Bitcoin could break past $115,000 and target $116,096. Market activity suggests steady demand, which may provide the necessary support for upward movement.
However, worsening conditions could derail momentum. Bitcoin risks slipping to $112,500 if selling pressure increases, with a further drop to $110,000 possible. Such a move would invalidate the current bullish outlook.
Plasma Loses Sharply
XPL was among the worst-performing altcoins today, falling nearly 20% in the past 24 hours. The token is trading at $0.95, which has now become a crucial support level.
If selling pressure persists, XPL could break below the $0.95 support and decline further to $0.81. Technical signals, including the Parabolic SAR, point toward a potential continuation of the downtrend. Such a move would reinforce bearish sentiment and add to investor caution in the short term.
On the other hand, bargain-seeking investors may view current levels as a buying opportunity. If demand rises, XPL could rebound above $1.08 and aim for $1.29. This recovery would invalidate the bearish outlook.
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