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3 New Bitcoin (BTC) Support Levels to Watch, Toncoin (TON) Sees Biggest Price Drop Ever, Solana (SOL) Up 8% as Ethereum Plummets
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Bitcoin lost its balance at around $55,000, triggering one of the largest liquidations in the history of the cryptocurrency market. Considering the dire state we are in, it is important to find and highlight the threshold that could serve as the basis for a reversal in the near future.
Bitcoin’s first significant support level will likely be between $52,000 and $50,000. Due to the psychological effect of the round number, this range is important. Furthermore, historical evidence suggests that this range has previously acted as both resistance and support, making it crucial for a possible reversal.
Looking at the weekly chart, we can see that the $47,000 level is critical. This level is in line with the weekly 200 EMA and refers to a previous phase of consolidation. According to many, the 200 EMA is a long-term support level and a bounce from this mark could give Bitcoin the momentum it needs to start climbing again.
If Bitcoin breaks from this level, it could signal a more significant correction. The next notable support zone lies in the $42,000-$40,000 range. Historically, this region has served as a solid support level and the basis for significant corrections. Its importance is increased by the fact that the 200 EMA on the daily chart also resides in this range. Holding this level could halt more significant declines and even pave the way for a rebound.
Toncoin’s Biggest Drop
Toncholine (TON) has seen perhaps its biggest price drop in percentage terms in 48 hours. The Telegram-backed asset has lost about 20% of its value and has fallen from around $8 to $6.6, virtually erasing all of the gains it made since the beginning of the month.
There are several reasons for the sudden drop in the value of Toncoin. First, a number of cryptocurrencies have seen large sell-offs as a result of the general bearish sentiment in the market. The market has been negatively affected, including Toncoin, as a result of Bitcoin’s recent drop below crucial support levels.
The price of TONNE has broken above the 50 EMA and is currently circling around the 100 EMA, according to an analysis of technical indicators. Although there have been strong support levels at this level in the past, there are concerns that they may not hold this time due to the severity of the recent sell-off.
Additionally, there has been a notable drop in the Relative Strength Index (RSI), which suggests that Toncoin is approaching the oversold region. Prices may continue to decline despite the possibility of a short-term rally due to the general bearish momentum.
Solana’s Unexpected Source of Strength
The only thing you wouldn’t expect in this catastrophic market crash is a strong move higher in one of the assets that should have followed the market more than the others. Solana is showing positive momentum against Ethereal, which could be a sign not to be ignored.
In particular, given the general pessimism in the market, Solana’s recent performance is impressive. Solana managed to gain 8% during substantial declines in major assets such as Ethereum and Bitcoin.
This suggests that there may be underlying bullish factors and that investor confidence is strong. Looking at the daily chart, Solana is now targeting the 100 EMA after clearing its 50 EMA, a crucial resistance level. This uptrend is particularly noteworthy because it stands in stark contrast to Ethereum’s downward trajectory.
Additionally, there appears to be increased buying pressure and momentum supporting Solana’s price action, as indicated by the rising Relative Strength Index (RSI). However, it is important to keep in mind that Solana is still losing value against the US Dollar.
About the author
Armani Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.