Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) have barely made any moves over the last 24 hours. However, some of the altcoins posted gains in the same duration while most of the others noted a drop. Fartcoin (FARTCOIN) joined the latter with a 9% decline today.

In the news today:-

• World Liberty Financial co-founders Chase Herro and Zak Folkman are under scrutiny for not reimbursing clients after a $2.5 million hack at their previous startup, Dough Finance. Herro is being sued by an investor for asset recovery, with no involvement from the Trump family in the incident.
• XRP Futures are now live on the CME, enhancing the asset’s liquidity and increasing the likelihood of an XRP ETF approval. While XRP’s price hasn’t reacted significantly, the news was expected and may have already been priced in by investors.

The Crypto Market Is Stable

The total crypto market cap has seen a decrease of $8 billion in the last 24 hours, now sitting at $3.31 trillion. Despite this, the market remains above the key support level of $3.28 trillion, which is crucial for preventing further decline in the coming days.

The broader market has remained relatively quiet, leading to the possibility of sideways movement for TOTAL. While current conditions suggest a stable trend, there remains the risk of a drop to $3.16 trillion if negative market factors take hold, potentially challenging the market’s stability.

Total Crypto Market Cap Analysis. Source: TradingView

However, if the broader market improves, TOTAL could see a recovery, testing the resistance at $3.40 trillion. This rebound would help maintain a positive outlook for the crypto market and signal potential for further growth.

Bitcoin Finds Support

Bitcoin’s price stands at $106,095 as of the latest update, currently testing the crucial $105,000 support level. The market faces resistance at $106,265, which has been a consistent barrier for BTC. Securing this support would be vital for further bullish momentum in the near term.

This resistance at $106,265 has caused multiple failed breaches in the past, leaving Bitcoin vulnerable. If BTC fails to break through this level again, profit-taking from investors could drive the price below $105,000, possibly pushing BTC down to $102,734. This would indicate a potential correction in the price.

Bitcoin Price Analysis. Source: TradingView

However, if Bitcoin manages to breach $106,265 and sustain its position, it could pave the way for a rally toward the all-time high of $109,588. This move would invalidate the bearish outlook and could signal the continuation of bullish momentum for Bitcoin.

Fartcoin Takes A Hit

FARTCOIN, the worst-performing altcoin of the day, has dropped by 9% over the last 24 hours, currently trading at $1.22. Despite this, it remains above the key support level of $1.20. This support is crucial to prevent further declines in the short term.

While the likelihood of FARTCOIN falling below $1.20 seems low, a worsening market environment could push it down to $1.00. Such a decline would significantly extend the losses and may further dampen investor sentiment, potentially invalidating any bullish outlook.

FARTCOIN Price Analysis. Source: TradingView

However, if FARTCOIN finds support at $1.20 and bounces back, it could rise toward $1.54. This recovery would invalidate the bearish thesis and signal the possibility of renewed bullish momentum for the meme coin.

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