Over the last seven days, the cryptocurrency market has seen a significant downturn, with the top five digital currencies losing a substantial portion of their value. According to CoinGecko, a leading crypto market tracker, the market has dropped by 2% just in the past day, adding to the ongoing decline. This downward trend has been exacerbated by the recent failure of First Republic Bank, which has cast a shadow over the banking industry as a whole.
As concerns about the banking sector mount, investors are on edge as they await the upcoming release of the Consumer Price Index data this Wednesday. With this critical information on the horizon, those involved in cryptocurrency trading should proceed with caution, as these assets are particularly sensitive to market shifts during such times. The following are the top five cryptocurrencies that have raised red flags over the past week.
This Week’s Top 5 Cryptos Raising Concerns:
XRD
Despite generating some excitement with its Consensus 2023 event, XRD has not been immune to the broader market’s downturn. CoinGecko data indicates that the token’s value has plummeted by 20% over the past week, signaling that it may not be a strong investment at this time. Currently, Radix is trading below the $0.08389 support level, and while there’s potential for recovery if it holds above this threshold, the token remains highly influenced by market forces. Keeping an eye on Bitcoin and Ethereum’s movements will be crucial in the coming days.
IMX
Immutable has been ambitiously working towards becoming the leading blockchain for Web3 gaming on Ethereum. Despite ongoing development within the IMX ecosystem, this vision has yet to materialize, as reflected by a nearly 20% drop in its value over the week. The token is trading at $0.797, just above its $0.721 support level. Maintaining this support is critical for IMX, as any further decline could exacerbate losses for investors.
LUNC
Following a targeted attack on one of its DeFi projects, LUNC saw a dip in investor confidence. Although there has been some recovery, external market pressures continue to weigh down on the token. Coinglass data reveals that short sellers slightly outnumber long buyers, indicating bearish control. After a nearly 19% drop over the week, LUNC is trading below its July 2022 support at $0.00009390.
KAS
Kaspa aims to be the fastest proof-of-work layer 1 blockchain and has continued its efforts despite market challenges. Even with a recent listing on KuCoin, KAS has struggled over the past week, depreciating by 20%. A critical support level at $0.024814 is now under threat, and bulls need to reclaim this ground to avoid further losses and potentially push towards the $0.036947 resistance.
ICP
The Internet Computer’s dApp ecosystem may be thriving, but ICP itself has faced difficulties gaining traction recently. CoinGecko reports an 18% decrease in value over the week, reflecting investor hesitancy amid general market instability. With bears aiming for a $4.888 price point, ICP supporters must defend this support level to prevent further declines.
In light of these developments, those involved in the crypto market should stay informed and exercise caution in their investment decisions.
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Source: bitcoinist.com