The cryptocurrency market experienced significant selling pressure with $650.35 million in total liquidations over the past 24 hours, according to reports from AMBCrypto. $622.85 million of these liquidations were long positions, creating substantial downward momentum across the market. Bitcoin [BTC] alone saw $205 million in liquidations after losing 3.14% in 24 hours, following a bounce from the $78.9k support level on Wednesday, May 13th. The selling pressure has particularly impacted altcoin market confidence, resulting in widespread market-wide losses as reported by RWATimes.
STABLE was down 18.7% in the past 24 hours, marking a significant reversal from earlier optimism. According to AMBCrypto reports, the cryptocurrency had appeared to breach a range formation it had been trading within since February, with the range spanning from $0.024 to $0.039. On Tuesday, May 12th, a daily session close at $0.04 above the range highs confirmed a breakout, but this momentum proved short-lived. After a sweep of the $0.044 liquidity pocket, bears seized control, enforcing rapid losses in recent days. The breakout failure came as a surprise after STABLE had looked as if it had breached the range formation, nullifying the earlier bullish sentiment.
The 1-hour chart reveals heavy bearish momentum with the A/D indicator and Awesome Oscillator plunging lower over the past 24 hours, as reported by AMBCrypto. However, the Money Flow Index presents a bullish divergence, with price making lower lows while the indicator forms higher lows. This divergence, combined with a test of mid-range support, could potentially see a bounce to the $0.037-$0.038 local resistance area, which had been a support area in recent days. Additionally, a cluster of long liquidations around $0.03 suggests possible overextended conditions that could trigger a brief price bounce. The technical setup indicates that while the divergence pattern is bullish, the overall trend remains bearish due to the broader market sell-off.
Despite the potential for a brief bounce, a drop to the range lows at $0.024 remains likely, particularly as it approaches another sizeable cluster of long liquidations, according to AMBCrypto analysis. The market-wide sell pressure could send STABLE back to the three-month range lows, highlighting the challenges facing altcoin markets amid broader cryptocurrency selling pressure. The failed breakout above $0.04 and subsequent decline demonstrates the vulnerability of altcoin markets to Bitcoin's dominance, with the recent Bitcoin selling having a cascading effect across the entire cryptocurrency ecosystem.
