Key Points
- Last week’s crypto market downturn significantly affected Bitcoin (BTC) and Solana (SOL), with Pepe (PEPE) experiencing a sharper price drop.
- The global crypto market cap lost over $280 billion, a 10% drop, reducing it to $2.32 trillion.
Impact of the Market Downturn on Major Cryptocurrencies
Bitcoin and Solana were among the major assets that bore the brunt of the recent crypto market downturn. Bitcoin started the week on a positive note, crossing the $70,000 mark on April 8, but the following day saw the bears take over, pushing it below the $70,000 threshold. This triggered a 3.45% loss, effectively wiping out the previous day’s gains. The hotter-than-expected U.S. inflation data worsened the situation. Despite a comeback attempt, Bitcoin’s price continued to decline due to tensions surrounding the Iran-Israel conflict.
From April 11 to 13, Bitcoin saw three consecutive days of declines, culminating in a steep fall to a one-month low of $61,596 on April 13. Despite a slight recovery, Bitcoin remains in a downtrend, down 8% over the past two days as it struggles to regain and maintain the $65,000 level.
Other Cryptocurrencies Also Affected
Solana’s week began less impressively than Bitcoin’s, but its subsequent price decline was steeper. Despite a modest 0.67% rise on April 8, Solana crashed 4.63% the next day, mirroring Bitcoin’s downturn. Its recovery on April 10 was marginal, with a 0.56% increase, but the rest of the week saw one of Solana’s biggest price slumps this year. From April 11 to 13, Solana recorded a discouraging 21.19% drop, surrendering crucial Fibonacci support levels.
More notably, Solana’s three-day downward spiral led to a collapse below the vital 50-day EMA. The last time Solana witnessed such a situation was in September 2023. It also gave up psychological supports at $150 and $140, trading at $139.94 at the time of reporting. The cryptocurrency is down 24% this week, having lost $19 billion from its market cap since April 8.
Pepe, a frog-themed meme coin, also suffered in the broader market downturn this week, dropping to a one-month low below the $0.000004 support. The meme coin’s gains at the start of the week surpassed Bitcoin’s, but its losses were also more significant, highlighting the increased volatility in the meme coin market. Despite a mild price increase, Pepe still trades below $0.000006, with its commodity channel index (CCI) crashing to -245, the lowest value in nine months. This low CCI suggests that Pepe is largely undervalued, with significant potential for growth.
