Total Crypto Market Capitalization Crashed 70% | And More in This Weeks Crypto Update.
- Total Crypto Market Capitalization Crashed 70%
- Long-Term Dogecoin Channel Shows How Far Away the Bottom Is
- The Chaikin Money Flow Indicator Reveals Shiba Inu Has Low Accumulation
Long-Term Dogecoin Channel Shows How Far Away the Bottom Is
Dogecoin (DOGE) has been in a downtrend for the last 13 months, with the price action trading inside a descending channel. In this article, we used the weekly log chart to zoom out and see how far away the bottom of this bearish cycle could be from here.
When zooming out, the long-term descending channel encapsulating the price action starting from the May 2021 peak is more visible. In the short term, we broke and closed below the middle of the channel, which now exposes the lower channel support.
The bottom of the channel stands at $0.036, which is near the bottom of the previous consolidation that led to the last leg higher in DOGE price. Therefore, this area is a significant price zone where DOGE can bottom.
Currently, the $0.05 support held, and the price bounced, but as long as we remain below the middle of the descending channel, the sentiment remains bearish.
The stochastic oscillator is also the most oversold it has ever been, and it already had a crossover to the upside. This development might slow down the current selling pressure, but ultimately we’re still drawn to the bottom of the channel.
What is a Stochastic Oscillator?
The Stochastic Oscillator is a momentum indicator that shows the location of the closing price of a crypto in relation to the high and low range of the price of a crypto over a period of time, typically a 14-day period. It is plotted on a scale from 0 to 100.
Any subsequent rally can face possible resistance near the $0.063 — $0.07 price zone, which is the middle of the channel.
The Chaikin Money Flow Indicator Reveals Shiba Inu Has Low Accumulation
Shiba Inu’s (SHIB) price bounced off the $0.0000085 key support level, but the rally is now quickly fading away, lacking strong bullish momentum and follow through. Furthermore, based on the Chaikin Money Flow (CMF) indicator, there are no signs of big institutions and whales accumulating the cryptocurrency.
Chaikin Money Flow
After a brief break above the 0 center-line, the CMF oscillator has returned below zero, signaling weakness. The last two times the CMF oscillator exhibited the same pattern, SHIB’s price actually made a new low.
Most of the CMF readings since the start of the year were below the zero line, confirming that the whales haven’t been accumulating through this bearish market. This shows that institutions have leaned towards distribution.
How does the Chaikin Money Flow indicator work?
The Chaikin Money Flow indicator uses the Accumulation/Distribution Line to measure the movement of money into and out of a security. The Accumulation/Distribution Line is a volume-based indicator, using a security’s close price and volume. The Chaikin Money Flow (CMF) indicator is a momentum indicator that tracks the amount or flow of money into and out of a security.
The RSI oscillator also confirms the recent price action as it shows more bearish momentum pressure. The oscillator briefly broke above the 50 mid-level, but the move couldn’t be sustained, revealing weakness in the current rally.
On the technical side, the bulls cannot hold above the $0.00001 big round number, again revealing that this market is still very weak.
SHIB’s price can stabilize around the current price levels and see more consolidation, a common price behavior in a bear market. However, if SHIB’s price moves above the $0.00001 big round number, it will signal that the bulls are back in control and that a new bullish move is unfolding.
Total Crypto Market Capitalization Crashed 70%
The total crypto market capitalization has fallen under the $1 trillion mark as most cryptocurrencies have crashed over 80% from their peak prices. At the same time, Bitcoin (BTC) lost more than 50% of its value this year and is now trading near the $20,000 psychological number.
Crypto Market Cap
At the start of the year, the total crypto market cap stood at $2.24 trillion (based on the CoinMarketCap data), which was shy away from the all-time peak of $2.97 trillion. At the time of writing, the entire crypto market is only evaluated at $880 billion.
By comparison, Bitcoin’s market cap has fallen to $362 billion, down from the $902 billion it was at the start of the year. At its all-time peak, the total market cap of Bitcoin was $1.27 trillion.
What is the Crypto Market Capitalization and why does it matter?
The Crypto Market Cap shows the total value of the cryptocurrency market. The value is calculated by multiplying the price of the each crypto coin and token by the number of coins or tokens in circulation.
The market cap is important because it shows the overall value of the cryptocurrency market. It is also used to compare the market cap of different cryptocurrencies.
For instance, the market cap of Bitcoin is used to understand the value of Bitcoin relative to other cryptocurrencies such as Ethereum, Ripple, EOS, Dogecoin, and others.
History of Crashing
The collapse of the crypto market this year marks the third-largest crash since 2017. However, it’s the largest crash since the March 2020 “Black Thursday” when the market lost over $200 billion in 24 hours.
Bitcoin’s price is currently reflecting the negative sentiment that has been surrounding the crypto market. A number of experts believe that the top-ranked cryptocurrency by market cap is likely to fall below the $20,000 support level.
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