Why is The Crypto Market Going Down Today?
Key Points
- The flagship cryptocurrencies, such as Ethereum (ETH), XRP, and Solana (SOL), are experiencing fluctuating prices and even a decline.
- The decline and uncertainties are largely attributed to the technical parameters and the larger macroeconomic context.
- Amidst the uncertainties, the crypto investors are advised to exercise extreme caution.
The popular cryptocurrencies such as Ethereum (ETH), XRP, and Solana (SOL) are showing high volatility despite the bullish sentiments about Uptober. The price instability is attributed to both technical and macroeconomic parameters, giving mixed signals.
Crypto Market Going Down? Popular Cryptocurrencies are Experiencing Price Instability
The flagship cryptocurrencies, such as Ethereum (ETH), XRP, and Solana (SOL), are experiencing fluctuating prices and even a decline. The world’s second-largest cryptocurrency, ETH, is currently priced at $4,497.93; it was around $4,512 in the early hours. Even though overall market sentiment remains bullish at the moment, the price swings are making crypto traders skeptical. The ETH is currently trading above its 200-day Simple Moving Average (SMA), but how the ongoing US Government shutdown will play out for the popular altcoins is yet to be seen. Besides, the ETH only had 14 green days in the past 30 days, further raising concerns about the price swings.
The popular altcoin Solana (SOL) was expected to surge today, amid the upcoming ETF speculations following the SEC’s move to streamline the ETF filing process. Despite the ETF frenzy, the SOL failed to hold above its key Fibonacci level, and the technical resistance is derailing the bullish pressure. The MACD histogram also suggests a bullish trend shaping around Solana. The oversaturation of the memecoin is another factor contributing to the decline of its prices, as they are failing to attract large-scale institutional investments. The Solana has an inflation rateof 16.26%, which is considered riskier. The total supply of it is capped at 611.02 million. 545.24 million is already in circulation. The volatility remains high at 6.99%. Despite the bullish market sentiments, Solana is struggling to climb up.
The XRP is another case point; the Ripple-backed coin was expected to fare better amidst the simplified ETF filing and increased institutional activities. Yet the XRP is trading around $3.02, and the 24-hour trading volume also went down by around 12%. The price keeps fluctuating despite the bullish sentiments.
Why Popular Crypto Coins are Experiencing a Decline?
The crypto market is expected to have an uptrend in October riding on the Uptober sentiments, but currently, the market is giving mixed signals. The decline and uncertainties are largely attributed to the technical parameters and the larger macroeconomic context. The U.S government shutdown seems to be affecting different currencies in varied ways. Although Bitcoin (BTC) showed rallying earlier, overall macroeconomic stability may be keeping investors away from the riskier and emerging cryptocurrencies. The delays in ETF approvals, especially for popular altcoins, are damping market crypto sentiment.
Looking forward, whether the crypto market can keep a bullish sentiment alive depends on timely approvals for ETFs attracting institutional investors, whether the Fed will implement the anticipated rate cuts, and the overall health of the economy. If the economy remains unstable, investors will move towards safe havens such as traditional investment options instead of betting their fortune in a dynamic crypto market. Amidst the uncertainties, the crypto investors are advised to exercise extreme caution and adopt risk-reducing strategies such as portfolio diversification.
Also Read: SEC Delays Crypto ETF Decisions Amid U.S. Government Shutdown
Crypto & Blockchain Expert