Why Is the Crypto Market Down Today?

The crypto market has resumed its downward trend, shedding $40 billion in value over the past 24 hours. Market leader Bitcoin has seen a 1% drop during this period.  Meanwhile, Raydium (RAY) emerges as the biggest loser.

In the news today:

• Strategy, formerly MicroStrategy, is speculated to be preparing for another major Bitcoin purchase after co-founder Michael Saylor shared a cryptic Bitcoin tracker post on X.
• Reports suggest that Kanye West (Ye) may have sold his X account to Barkmeta ahead of a planned crypto launch, raising concerns about potential fraud. 

TOTAL Falls as Market Activity Dips

The total crypto market capitalization has dropped by $40 billion over the past 24 hours. TOTAL currently stands at $3.09 trillion, slightly above the critical support formed at $3.05 trillion.

Strong market headwinds have caused TOTAL to repeatedly test this support level since the start of the month, attempting to break below it in recent weeks. With waning bullish momentum in the market, the likelihood of a fall below $3.05 trillion continues to strengthen.  

If this support fails, TOTAL could fall under $3 trillion toward $2.6 trillion. This would signal a deeper market downturn, with many assets plummeting in their value.

Total Crypto Market Cap Analysis. Source: TradingView

However, if the support level at $3.05 trillion holds and the total crypto market capitalization rebounds, it could push past the resistance at $3.24 trillion.

Bitcoin Remains Range-Bound, But Risks Lie Ahead

At press time, leading asset Bitcoin exchanges hands at $95,798, noting a 1% price fall over the past day. It currently trades near the lower trend line of the horizontal channel, within which it has oscillated since the beginning of February.  

When an asset moves within this channel, it indicates consolidation, with the price fluctuating between established support and resistance levels. Since February 5, BTC has consolidated within a range, facing resistance at $98,663 while finding support at $95,650.

As with BTC, when an asset trades near the lower trend line of this channel, it signals a crucial point where buyers may step in to prevent further decline. A breakdown below this level could indicate increased selling pressure, further decreasing BTC’s value.  In that case, the coin’s price could dip to $92,325.

Bitcoin Price Analysis. Source: TradingView

Converesly, if market sentiment shifts and coin accumulation resumes, BTC’s value could attempt to rally past the resistance at $98,663 and target $102,753.

RAY Is the Market’s Biggest Loser

Raydium’s RAY ranks as the market’s biggest loser, recording a 28% price fall during the past 24 hours. At press time, the altcoin trades at a three-month low of $3.13.

Notably, RAY’s value decline has been trailed by a rise in its trading volume, confirming the bearish bias against it.  During the review period, the altcoin’s trading volume climbed by 301%, totaling $255 million.

When an asset’s price falls while trading volume surges, it signals strong selling pressure. This suggests increased investor exit and potential continuation of the downtrend. If this holds, RAY risks falling to $2.60.

RAY Price Analysis. Source: TradingView

On the other hand, if RAY accumulation strengthens, it could drive its price up to $4.12.