Last week, volatility in the cryptocurrency market resulted in a staggering loss of $100 billion. This decline was reflected in the global cryptocurrency market cap, which decreased by 4% to $2.36 trillion at the time of writing. Here are the top cryptocurrencies to watch over the next several days.
Ethereum drops below $3,000
Ethereum (ETH), the second-largest cryptocurrency, saw its value fall below the $3,000 threshold.
ETH, BOME and HNT prices – May 12 | Source: Santiment
Ethereum attempted a last-minute rally in the latter part of the week, but the strategy faltered under persistent bearish pressure throughout the week.
Mirroring the previous week, ETH commenced this week on unfavorable footing, with a 2.37% price decline on May 5.
Following this initial decline, the asset continued its downward trajectory, experiencing three consecutive days of losses as of May 8.
During this period, Ethereum declined by 5.3%, with liquidations exceeding Bitcoin’s (BTC). However, it managed to maintain strong support at $2,935, coinciding with the lower boundary of its Bollinger Bands on the daily timeframe.
The decline led to Ethereum relinquishing the psychological $3,000 price territory, which it had only recently reclaimed towards the end of last week.
Nonetheless, after retesting the $2,935 support level on May 8, Ethereum staged a notable recovery the following day, surging by 2.10% and once again surpassing the $3,000 threshold.
The rebound proved fleeting, as a significant 4.17% decline on May 10 wiped out these gains entirely.
Despite efforts to recover, Ethereum continues to face downward pressure, remaining below the $3,000 price level. At last check, the asset is down 6.4% for the week, with a market price of $2,934.
Lesser-known altcoins like Book of Meme (BOME) and Helium (HNT) also also experiencing comparable declines.
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BOME retests 26-day EMA
The only meme coin in the list, Book of Memes also felt the impact of the market uncertainty despite its penchant for solitary gains during market downturns. At the start of the week, BOME traded well above the 26-day EMA.
It bears mentioning that BOME traded below this trend-following indicator throughout last week, indicating bearish momentum. However, the rebound that began last Wednesday culminated in a push above the pivotal level.
The bears spent this week looking to drop BOME below the 26-day EMA, a move that could trigger a cascade of price declines underneath $0.010. After retesting the moving average on May 6, BOME spiked 7.89% that day, bucking the overall market trend.
Nonetheless, the bears caught up with it afterward, with a series of retests on the 26-day EMA recorded since then. At press time, BOME changes hands at $0.010863, trading slightly above the moving average at $0.010828. Should it drop below the EMA, its last line of defense above $0.010 lies at the $0.010475 zone.
Helium sees surge in selling pressure
Helium did not escape the broader market’s downtrend, witnessing a three-day drop similar to Ethereum at the start of the week. However, its losing streak led to a more substantial decline of 19.6% on May 8.
This sustained downtrend led to HNT giving up the $5 price territory for the first time this month, as it slumped to $4.5. Despite a recovery campaign that ensued on May 9, the resistance at $5 has been too potent to breach.
A retest of $5.126 on May 10 eventually resulted in another price collapse.
Helium’s inability to reclaim the $5 level has been a result of an increase in selling pressure. The Accumulation/Distribution metric has continued to drop throughout this month, dipping from -3.036 million on May 1 to -3.505 million at the last check.
This sustained drop points to a growth in selloffs, as market participants look to exit the market on the back of the downtrend.
In addition, Coinglass data confirms that investors have deposited $2.127 million worth of HNT to exchanges since April 30, as exchange inflows see a persistent rise.
Read more: Tether CEO fires back at accusations about company solvency
