Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin continue to witness fluctuation halfway through April. Among the altcoins, MANTRa (OM) took the biggest hit as it nearly crashed its entire value due to critical allegations.

In the news today:-

• The MANTRA (OM) token experienced a 94% collapse in price, losing over $5.5 billion in market capitalization. Allegations of insider selling were blamed for the crash, which took OM from $6.33 to below $0.37, drawing comparisons to the Terra LUNA meltdown.
• World Liberty Financial (WLFI), backed by the Trump family, added 4.89 million SEI tokens worth $775,000 to its portfolio. The purchase was made on April 12 through a WLFI trading wallet using USDC, which had previously been used to accumulate other altcoins.

The Crypto Market Is Holding

The total crypto market cap has dropped by $27 billion over the last 24 hours, currently standing at $2.64 trillion. This decline comes amid broader market weakness, causing significant fluctuations. Investors are watching closely for potential signs of recovery as market conditions shift.

At the moment, TOTAL is holding above the $2.61 trillion support level. If this support holds, there is hope for a rebound. However, if the market continues to show weakness, TOTAL could fall further, potentially testing the $2.50 trillion mark and extending losses for the market.

Total Crypto Market Cap Analysis. Source: TradingView

If the broader market stabilizes, TOTAL could recover by bouncing off $2.61 trillion. This would push the total crypto market cap toward the $2.74 trillion level. This resistance level is crucial for further growth and could signal a stronger recovery if breached.

Bitcoin is Struggling Around $85,000

Bitcoin’s price is struggling around $85,000, failing to secure it as a solid support level throughout this month. The lack of strong investor support and broader market cues have caused this volatility, leaving Bitcoin’s price uncertain and vulnerable to further fluctuations in the short term.

Although further decline seems unlikely, a drop to $82,000 remains possible if the broader market conditions do not improve. Such a fall could prompt additional selling from Bitcoin holders, reinforcing the bearish sentiment. This would likely result in a period of consolidation or continued downward pressure.

Bitcoin Price Analysis. Source: TradingView

However, if Bitcoin can successfully secure $85,000 as support, it could push the price upward. This would bring the price closer to the next resistance level of $89,800, potentially invalidating the bearish outlook and signaling a recovery for the cryptocurrency.

MANTRA Witnessed Unexpected Losses

OM is the biggest loser of the day, week, and month, having crashed by 87% in the last 24 hours. At the time of writing, the altcoin is trading at $0.76. This drastic drop has left investors concerned about its future price trajectory.  

The dramatic decline from $6.30 following allegations of insider selling triggered panic selling and pushed the price to intra-day lows of 94%. Despite some recovery attempts, OM remains vulnerable to further decline as investors continue to react to the ongoing negative sentiment surrounding the token. 

OM Price Analysis. Source: TradingView

The team behind OM has denied the insider selling allegations, aiming to reassure investors. However, any significant recovery will depend on flipping $1.00 into support.