Major Cryptocurrencies Are Hitting 2018 Lows Today

Bitcoin's drop to an 11-day low of $7,438 is hogging the limelight, as usual, but other cryptocurrencies are struggling, too.

Today, ether ETH$4,011.55, Ripple's XRP and BCH$522.61 all dropped to fresh lows for the year so far. Thursday's market developments highlight the continued crunch in the crypto markets, which has solidified in the months since many crypto-assets soared to all-time highs.

Indeed, during the first week of January, the overall market capitalization of the cryptocurrency market exceeded $800 billion – as of today, that figure has dropped to roughly $275 billion, according to data from CoinMarketCap.

Ether

Ethereum's ether token, the second-largest cryptocurrency by market capitalization, continues to take a beating, and as of press time threatens to drop below the $400 mark. ETH has depreciated by 10 percent in the last 24 hours and is down 47 percent on a year-to-date basis.

It's worth noting that the 14-day relative strength index (RSI) shows that the cryptocurrency is at its most oversold level since December 2016 and, hence, could see a sharp rally if the broader markets regain poise.

XRP

XRP fell to $0.53 soon before press time – the lowest level since Dec. 14, according to CoinMarketCap. The cryptocurrency's value has depreciated by 8.8 percent in the last 24 hours and, on a year-to-date (YTD) basis, it is down 76 percent.

The world's third-largest cryptocurrency hit a record high of $3.84 on Jan. 4, and since then has been steadily losing altitude in line with the broader market. However, as seen in the chart below, the sell-off looks overdone.

XRP daily chart

Bitcoin cash

Meanwhile, bitcoin cash dropped to $757 today, the lowest level since Nov. 10, and was last seen trading at $785. Cryptocurrency payment processor BitPay announced yesterday that it has added support for bitcoin cash – however, the news has failed to put a floor under prices.

The fourth-largest cryptocurrency is down 12 percent on a 24-hour basis, while on a year-to-date basis, it has depreciated by 70 percent.

BCH daily chart

The above chart (with data drawn from Bitfinex) shows that bitcoin cash witnessed a death cross (bearish 50-day MA and 200-day MA crossover) on March 20 and fell to $750 today.

The RSI was bearish and well above the oversold territory on March 20, so the death cross seems to have had an effect – contrary to evidence that it tends to be a lagging indicator arising before an upturn.

A close (as per UTC) below $758 (Feb. 6 low) could yield a deeper sell-off to $719 (September 2017 high). Further losses are unlikely, as the RSI would show oversold condition by then.

Disclaimer: This article is not intended to provide investment advice.

Falling balls image via Shutterstock