19.05.202118:28 Forex Analysis & Reviews: Major cryptocurrencies fell to local lows: analysis and forecasts

The cryptocurrency market has been extremely turbulent over the past few weeks. Although there were periods of growth, they occurred in conditioned price ranges. The only exception to this rule was Ethereum, which entered a new stage of development. However, if we take the situation as a whole, it becomes clear that the cryptocurrency market was in nervous anticipation of a certain signal that could launch a full-fledged growth cycle or, on the contrary, a downward trend. As a result, the current situation is closer to the second scenario. Over the past 24 hours, the total market capitalization of the cryptocurrency has collapsed by 21%, to $1.75 trillion.

The main altcoin also failed to hold on to safe positions and declined by 26%. Ether was initially close to a technical correction, which was exacerbated by market volatility and high volatility. As a result, as of 12:00 UTC, the cryptocurrency is quoted in the region of $2,500 with an average daily trading volume of $75.5 billion. In the near future, ETH will not show growth, but will only begin to recover its positions. However, the dynamics of changes in the value of the asset in a few hours remains sharply negative (-8%) and indicates that the cryptocurrency may fall even lower, to the level of $2,000. At the same time, a positive news background has formed around the ether, associated with an increase in the security of the asset's network after a recent update. It is this announcement of the developers of the cryptocurrency that will allow the coin to quickly increase the audience for the recovery of indicators.

The Ripple token is also doing poorly, which has fallen by 22% over the past 24 hours. As of 12:00 UTC, the asset is quoted at $1.12. Despite the rather personal positive background, the coin could not avoid the market pressure and its quotes collapsed after the entire market. However, unlike other altcoins, the cryptocurrency shows less sad price changes in a few hours. Most likely, XRP will be the first asset to return to full growth. This is due to the increased interest of investors due to local victories over the SEC, as well as the recent news that Ripple will become a partner of the Bank of Egypt (NBE).

The current decline in the cryptocurrency market takes place when positive local news backgrounds of individual coins are established. Altcoin Polkadot is a vivid confirmation of this because the asset recently set a new historical record, and over the past day has already sunk by 37%. As of 12:00 UTC, the cryptocurrency is quoted at $24.5. Altcoin indicators began to fall rapidly in the last few hours. The coin lost 30% in price, although before that, the cryptocurrency held safe positions. Most likely, this is due to the new collapse of bitcoin, which reached the mark of $33,000, falling by 6% in a few hours. At the same time, Polkadot is preparing to launch the final stage of updating the asset's network. Thanks to the update, users will have the opportunity to combine their investments to support a specific blockchain.

Things are also bad for Litecoin, which over the past day flew out of the top ten by capitalization. The cryptocurrency has fallen in price by 41% and as of 12:00 UTC is quoted at $179, which is the lowest since February 2021. Such a drop in altcoin is due to the deplorable situation of bitcoin and the negative news background, which collapsed the entire market by more than 25%.

Bitcoin triggered the largest recent collapse of the cryptocurrency market. Most of the assets are in the downward trend and are confidently approaching local lows. In the near future, the bearish trend in the market will continue. The news background can also further aggravate the situation of individual coins because it became known that the US authorities also plan to introduce strict regulatory mechanisms for cryptocurrencies. The negative background was slightly diluted by the news that the subsidiary of Saxo Bank will allow customers to trade cryptocurrencies. However, given the current state of affairs, this news is incommensurable in its impact on the cryptocurrency market, and therefore the introduction of additional rules for trading crypto assets can collapse the market even more.