The crypto market sees a sharp decline with $63 billion disappearing in 24 hours. Bitcoin remains below $115,000, while Ethereum records the biggest losses of the day. Investors are taking a defensive stance amid concerning technical signals.
The total crypto market capitalization has undergone a significant correction, dropping from $3.81 trillion to $3.75 trillion in just 24 hours. This bearish movement reflects a widespread sentiment shift as major assets struggle to maintain momentum. The declining trading volume combined with increased volatility suggests traders are opting for caution.
Bitcoin is currently consolidating around $113,200, unable to break through the $115,000 resistance level that acts as a major psychological ceiling. Altcoins are following this downward trend, with Ethena particularly standing out after losing 9% of its value. This widespread weakness comes amid institutional fund movements, notably Sequans’ transfer to Coinbase, fueling uncertainty about the intentions of large holders.
This drop has primarily liquidated a large cluster of long positions for Bitcoin. The question remains whether this is sufficient or if they will target long positions all the way down to $104,000.
The day’s most notable news concerns the massive transfer made by Sequans: 970 BTC, worth approximately $111 million, was moved and sold on Coinbase. This transaction represents the first large-scale operation since the company adopted its Bitcoin treasury strategy. The timing of this movement coincides with the market correction, fueling speculation about a potential liquidation.
Sequans nevertheless maintains 2,264 BTC in its treasury, valued at $255 million at the current price. The company has not officially communicated about the nature of this transfer, leaving uncertainty. Is it simply a custody operation or a prelude to a sale? This ambiguity weighs on investor sentiment as they closely monitor institutional holder movements.
Transfers to exchange platforms are generally interpreted as bearish signals by on-chain analysts. Historically, these movements often precede distribution phases. However, some crypto experts qualify this interpretation, noting that companies may simply be reorganizing their asset custody for security or regulatory compliance reasons.
The price of BTC is currently testing the $112,500 support, a threshold that has already acted as a floor during previous sessions. Technical analysis reveals lateral consolidation that has lasted for several days, with progressively declining volumes. This configuration suggests market indecision before a more pronounced directional movement.
If selling pressure intensifies and the $112,500 support breaks, the next level to watch is between $109,600 and $110,000. A break below this psychological threshold could trigger cascade liquidations on leveraged long positions. Traders are waiting for clear signals before repositioning their strategies.
Conversely, a volume-supported rebound could allow Bitcoin to regain momentum toward the $115,000 resistance. A breakthrough of this level would pave the way to $117,261, a zone that would mark the return of confidence. Momentum indicators such as the RSI remain neutral, leaning neither toward oversold nor pronounced overbought territory.
Among altcoins, Ethena (ENA) shows the most disappointing performance with a 9% decline over the past 24 hours. The token is currently trading at $0.456 after losing the $0.466 support. This relative weakness compared to the rest of the market raises questions about the solidity of demand for this project.
Chart analysis reveals that ENA is dangerously close to the critical $0.436 support. Loss of this level could lead to an accelerated correction toward lower zones. Technical indicators show a bearish divergence, suggesting that price momentum is struggling to maintain despite some rebound attempts.
Low trading volume on ENA amplifies volatility and makes price movements more susceptible to manipulation. To reverse the trend, the token would need to reclaim the $0.466 zone with convincing volume. Such a scenario would then target the $0.519 resistance and invalidate the current bearish structure.
Alongside price movements, the DeFi ecosystem is experiencing important structural developments. Maple Finance’s MIP-019 proposal marks a strategic turning point by abandoning the traditional staking model in favor of a system of token buybacks and governance incentives. This transformation aims to better align rewards with the protocol’s actual performance.
This update positions Maple as a leading player in the growing segment of on-chain loans backed by real-world assets (RWA) and institutional investments. The RWA market represents a multi-billion-dollar potential as traditional finance gradually seeks to integrate blockchain. Maple Finance anticipates this demand by adapting its governance architecture to attract institutional capital.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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