Crypto Market in Red: Market Cap Drops 4% in 24 Hours

• Bitcoin’s critical support at $56K could stabilize or signal further declines.
• Ethereum’s key support at $2,320 may attract buyers or indicate deeper correction.
• Cosmos (ATOM) shows heightened activity whereby $4.00 support could stabilize price.

The global cryptocurrency market has taken a sharp downturn, with its market capitalization falling 4.22% in the past 24 hours. Major cryptocurrencies like Bitcoin, Ethereum, Solana, and Cosmos (ATOM) are all seeing significant losses.

As per Coinmarketcap data at press time, Bitcoin, priced at $56,437.34, has seen a decline of 4.37% in just one day. The price trend indicates a sharp downturn from around $58,980 to its current level. Support levels for Bitcoin are critical.

Read also: Analyst Predicts Bitcoin at $200K, Ethereum at $15K in 2024 Bull Run

The first key support is at $56,000. If the price holds above this, it could stabilize. However, should it break below $56,000, the next support level to watch is $55,000, where buying interest may emerge to stem further declines.

Resistance levels are at $58,000 and $59,000. If Bitcoin can recover, $58,000 might act as a resistance point, with $59,000 being the next significant hurdle.

Turning to Ethereum, price stands at $2,378.05, reflecting a 5.48% decrease over the last day. Ethereum’s price trend shows a drop from approximately $2,516 to a low near $2,320 before a slight recovery.

For Ethereum, support levels are also key. The first notable support is at $2,320. If the price drops to this level, it could attract buyers. Below this, the critical support level is $2,300, where a further drop might indicate a deeper correction. 

Resistance levels for Ethereum are at $2,400 and $2,500. The price around $2,400 could act as immediate resistance, with $2,500 being the next major resistance point.

Read also: Solana Price: Could it Reach $1,000 Like Ethereum Did?

Solana is trading at $128.35, down by 4.24% in the last 24 hours. The price started the day at $134 but has since fallen to around $126. The immediate support level for Solana is $126. If the price declines to this level, it might find buying interest. Below this, the more significant support level is at $124.

Resistance levels for Solana are at $130 and $134. A rebound above $130 could signal a potential recovery, while breaking through $134 could lead to a stronger upward move.

Cosmos (ATOM) is priced at $4.04, having dropped by 9.04% in the past day. The price trend shows a decline from $4.43 to the current level. Key support for ATOM is at $4.00, a psychological level where the price tends to stabilize. 

The increased trading volume, up by 53.95%, suggests heightened market activity. This surge in volume could reflect either panic selling or buying anticipation at key support levels.