Data from TradingView shows that 75 of the top 100 coins by market value are trading below both their 50-day and 200-day simple moving averages. This is a sign that many coins are underperforming and that the market is losing strength.
Major coins like Bitcoin Ether and Solana are among those below these key averages. These coins make up a large part of the market and when they fall it affects the overall mood of investors. Bitcoin has dropped to around 87000 from a record high of over 126000 in early October. This slide is making people cautious about investing in other smaller coins.
The 50-day and 200-day moving averages are important tools that traders use to understand trends. They smooth out daily price changes and show the bigger picture. When a coin falls below both of these averages it can signal more selling and lower prices ahead.
In comparison only 29 stocks in the Nasdaq 100 show similar weakness. This shows that while the stock market remains strong the crypto market is facing more pressure. Bitcoin often moves in line with Nasdaq and when it falls it can amplify losses in other cryptocurrencies.
The 75 coins below the key averages include Bitcoin Ether Solana BNB and XRP. These are the largest and most traded coins in the market. They are used in futures and exchange traded products and their weakness affects the confidence of many investors. When these big coins struggle smaller and less liquid coins are usually hit even harder.
Another indicator called the relative strength index or RSI shows that only eight of the top 100 coins are oversold. These coins are PI APT ALGO FLARE VET JUP IP and KAIA. Being oversold can mean that a coin has fallen too fast and might stabilize or go up a little. However most coins are not yet at this level which suggests there could be more losses ahead.
The RSI measures price momentum over the last 14 days on a scale from 0 to 100. Readings below 30 suggest oversold conditions while readings above 80 suggest overbought conditions. The fact that only a few coins are oversold while most are below key averages points to a broad weakness in the market.
Traders see these signals as confirmation that the crypto market is still in a downtrend. Investors may need to be patient and cautious before expecting any significant recovery. With most coins under pressure and only a few showing signs of hitting a bottom the market may continue to face challenges in the short term.
Overall the cryptocurrency market is showing clear signs of bearishness. The biggest coins are underperforming the key averages and only a handful of coins are oversold. This means there is room for prices to move lower and investors need to be careful as the year ends.
