Why is The Crypto Market Down Today?

The total crypto market cap (TOTAL) dropped $25 billion over the last 24 hours, slowing down its decline from the day before. Bitcoin (BTC) seems to be leading this drop; however, altcoins are now following the crypto king’s lead, with Mantle (MNT) leading the surge with a 10.5% rise.

In the news today:-

• Gemini has filed its S-1 statement, revealing plans for an IPO in 2025, aiming to list on Nasdaq under the ticker GEMI. The filing includes Goldman, Citi, Morgan Stanley, and Cantor as lead bookrunners, though the IPO price remains undisclosed.
• The US Treasury’s OFAC has imposed sanctions on the Russian ruble-pegged stablecoin A7A5 and its creator, A7 LLC, adding them to the Specially Designated Nationals list. This action follows similar sanctions by the UK and EU, aiming to prevent Russia from using cryptocurrencies to bypass financial sanctions.

The Crypto Market Finds Support

The total crypto market cap has declined by $25.8 billion in the last 24 hours, now sitting at $3.92 trillion. It is currently holding above the key support level of $3.89 trillion. This range is crucial for maintaining stability in the broader cryptocurrency market.

The sharp drawdown seen 48 hours ago seems to be slowing down, providing cryptocurrencies with a much-needed break. This pause could allow the market to regain momentum and potentially bounce back. As a result, the market cap (TOTAL) may rise again, improving overall market conditions.

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Total Crypto Market Cap Analysis. Source: TradingView

However, if the market conditions continue to worsen, the total crypto market cap could fall through the support of $3.89 trillion. This would push the market cap down to $3.81 trillion, signaling further weakness and a potential bearish trend for cryptocurrencies.

Bitcoin Is Holding On

Bitcoin’s price is currently at $117,547, holding above the crucial support level of $117,261. This follows a decline observed in the past 48 hours, with BTC leading the downturn. Investors are closely watching these levels for signs of further direction.

The relative strength index (RSI) is currently above the neutral mark in the positive zone. This indicates that the bullish momentum for Bitcoin remains intact, which could help BTC price bounce back. If the momentum continues, BTC may reclaim $120,000 as support and potentially push higher.

Bitcoin Price Analysis. Source: TradingView

On the other hand, if selling pressure increases, Bitcoin’s price could fall through the support of $117,261. In this case, BTC might slide further down to $115,000, extending the recent decline and potentially invalidating the bullish outlook.

Mantle Took A Different Route

Mantle’s price is up 10.5% today, while most altcoins move contrary to Bitcoin’s trend. The Parabolic SAR acting as support indicates that the active trend for MNT is bullish. This upward momentum shows strong potential for further price increases in the near term.

The uptrend in Mantle could push its price towards the resistance at $1.31. Currently trading at $1.20, MNT’s continued bullish movement will need to breach this level. Successfully flipping $1.31 into support would likely propel MNT to $1.39, marking a significant price milestone for the altcoin.

MNT Price Analysis. Source: TradingView

However, if investors begin to secure their gains and sell, MNT could experience a drop. The price may fall to the support level of $1.02, and losing this support could erase recent gains. This would invalidate the bullish outlook for Mantle, signaling potential further decline.