The Cryptocurrency Market Just Broke a Key Support Level
This week has not been off to a great start for crypto bulls and it looks like things may get worse in coming days, as the market just broke a key support line.
The AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, has broken 70.5, which acted as support for the index multiple times over the last month. Now, the index’s drop is beginning to intensify, down nearly 4.7% to 68.72.
While some of the biggest index decliners over the past 24 hours include Aurora (-30%) and Nano (-15%), the losses of Ethereum (-10%) are currently the most significant driver as ETH makes up roughly 10% of the index by weight. The price of Ethereum (ETH) has suffered from increased short-interest and a cooling ICO market.
Interestingly, Bitcoin (BTC) has been relatively flat over the past week and is currently down only -1.23% to $6,268. This indicates that the latest sell-off has been entirely altcoin-driven and investors should keep a close eye on the price action of BTC, as a move towards $5,000 could be possible.
Other cryptocurrency categories have sold-off over the past 24 hours. The AltDex Exchange Token Index (ALTEXC), a benchmark index for the industry’s leading exchange tokens, fell over 8% while the AltDex Privacy Coin Index (ALTPRV), which tracks tokens focused on privacy or security, is down around 10%. The new AltDex Masternode Index (ALTMSN) has decreased by 11%.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.