Cryptocurrencies Vulnerable To More Downside; TRON Breaks Below Falling Price Channel
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The cryptocurrency market remains vulnerable to further losses on Thursday as the market capitalization hovers around critical weekly support.
Bitcoin failed to attract buying interest from the psychological $8,000 support level as sentiment towards the leading cryptocurrency remained weak. According to data from Coinbase, BTC/USD trading volume was at its lowest level since October 2018.
TRON and Binance Coin were the worst performing cryptocurrencies among the top 20 cryptocurrencies by market capitalization as both suffered intraday losses of approximately five percent.
TRON is on course to its fifth consecutive day of trading losses, with the coin approaching critical technical support on the daily time frame.
The daily time frame shows the TRX/USD pair is approaching the bottom of a falling price channel. Medium-term bulls may attempt to buy the TRX/USD pair on current levels, in anticipation of a recovery back towards the top of the price channel.
Key technical support is located at the $ 0.015000 and $0.013200 levels, while key resistance is located at the $0.017500 and $0.019000 levels.
TRX/USD by Tradingview
Total Market Capitalization
The daily time frame chart of the total market capitalization continues to show a falling wedge pattern, with markets testing back towards the bullish breakout that occurred on October 26th.
The trading action around the falling wedge pattern is likely to dictate the direction of the market going forward. A breakdown inside the falling wedge pattern could provoke heavy technical selling.
A recovery from current levels would be extremely bullish for the market in general, and could lead to a strong technical rally back towards the $250 billion level.
Crypto Total Market Cap by Tradingview.com
According to the latest data from The Tie, sentiment toward the entire cryptocurrency market has improved to 46.0 percent.
Litecoin has the weakest sentiment among the top-10 cryptocurrencies at 25.1 percent. Meanwhile, Stellar Lumen has the strongest at 55 percent.