The crypto market suffered a short-term correction yesterday, perhaps on unsubstantiated news that Evergrande had defaulted on its loan repayments, or perhaps just because leverage on long positions had grown to eye-watering levels. However, after a 11.5% dip, most fundamental cryptocurrencies are heading back up, some to approach all-time-highs once again.
It appears that retail traders were handed yet another lesson from the cryptocurrency market yesterday. According to Coinglass.com, 171,000 traders were liquidated over the last 24 hours, together with a combined value of nearly $700 million.
However, this wasn’t a particularly bad shake-out at all by crypto market standards, and many traders will have taken up leverage again on the dip. Could this be a sign that we might see yet another correction in the near future?
At time of writing, bitcoin has settled at the strong support made by the previous high made back on 14 April, before the crash that continued until mid-July. The trend is still upwards, but watch this space.
Ethereum took a small 8% dip, and reconfirmed back to a trendline it has been following since the end of September. It is currently sitting at just under $4700, and looks good to continue on this trend.
Other very fundamentally sound altcoins reacted in a similar fashion. Terra Luna (LUNA) also reverted back to a trendline it has been on since 21 September. News came out that the Terra community had voted to burn 89 million LUNA tokens, amounting to a value of around $4.5 billion.
This is likely to lead to upward pressure on the price, and LUNA has currently bounced back to just under $51, $4 dollars short of the all-time-high it made yesterday before the market dump.
Another altcoin recovering from the healthy correction is Solana. After reaching an all-time-high of $260 last weekend, the dip took the SOL token down to touch and confirm the last high, set back on the 9 September. SOL is currently sitting at around $240.
The Solana conference came to a conclusion yesterday and developers should be returning home now, inspired and ready to build the ecosystem out. Look for a very bullish return to trend in the near future.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
