The value of cryptocurrencies has continued to deteriorate following the sudden declines that occurred in November 2018. Most digital assets lead by the largest, Bitcoin have been exploring yearly lows in the past three weeks. The market seemed to have found a bottom towards the end of November, however, we have seen fresh declines breaking critical support areas especially for the larger coins in the market. The total market capitalization currently stands at $125 billion down from $205 billion recorded on November 1 as observed on Blockmodo. The trading volume in the last 24 hours is balancing at $13 billion, which relative higher compared to the $10 billion on November.
Stellar has found a new home after displacing Bitcoin Cash (BCH) from the 4th position in the market. The coin has been performing relatively well in spite of the downward trend in the market in the past two months. Initially it zoomed past EOS in terms of market capitalization becoming the 5th largest crypto before battling BCH.
The token embarked on a downward spiral in the second week of November canceling most of the gains that had tested $0.3 to the upside. XLM/USD slipped into a resistance range with the range limit at $0.1798 while the range support sits comfortably at $0.1385. Stellar price is trading at $0.14775 after breaking below the short-term triangle support marginally above $0.16. There was a recovery from the range support but the bulls lost steam short of the range limit.
At the moment, XLM is bearish with the stochastic exploring levels in the oversold region. Besides, the gap between the 100 SMA and the 200 SMA is widening to show that the presence of the bears is rising as well. Since the short-term 100 SMA crossed below the 200 SMA last month, the price has remained in a bear trend. It is essential that the buyers defend the support at $0.1385, although a break above the hurdle at $0.1798 will place XLM on a recovery path above $0.2.
Litecoin is also stuck in range just like Stellar. The digital asset has not been spared by the bear pressure prevailing in the market. Besides, there was a drop below $30.00 with LTC/USD trading lows around $27.45. The bulls took control of the price in the last week of November, however, they lacked the steam to break and sustain movement past the hurdle at $36.00. The range resistance at $37.40 is also significant hurdle.
The price is trading below the simple moving averages in the 2-hour range with the 100 SMA hindering growth at $32.72 and the 200 SMA at $33.90 respectively. LTC/USD is exchanging at $30.81 after correcting lower 5.38%. Litecoin showed a potential for recovery after it zoomed past the declining trend on December 1 but failure to break past $36.00 is sending the coin back to the drawing board. The initial support is the trendline (currently being tested) and the second support area is observed at $27.45. The stochastic has recovered from the levels deep in the oversold and currently holding tight at 23.43% to show that bulls are present. Trading above the immediate resistance at $32.00 will open the path for recoil which could retest $36.00.
The bloodbath in the crypto market is still in full swing. Bitcoin price is nearing its monthly lows and is trading at $3,820 at press time. Moreover, the declining trendline started in November indicates that a reversal is either an impossibility in the short-term or it will be an uphill task for the buyers. Besides the price is still locked below the simple moving averages (hourly range).
On the other hand, the stochastic is relatively bullish at 34.62 after recovering from levels close to 15%. Bitcoin initial resistance at the 23.6% Fib retracement level with the last swing high of $5,665.36 and the swing low of $3,480.10 is a psychological level that would open the door for gains towards the second resistance level at $4,250. Bitcoin must correct above the supply zone at $4,349.76 in order to come out of the bear range.