Crypto Market Rebounds After Trump/China-Triggered Mega-Plunge

The altcoin market lost almost half a trillion dollars in the space of just a few hours last Friday. A breathtaking plunge liquidated around 1.6 million traders to the tune of more than $19 billion in losses - making this the worst crash in crypto history. Monday arrives and the market is in full recovery mode. What’s next?

Worst crash in crypto history

Friday’s crypto crash will go into the annals of history as the worst ever. When President Trump released a tirade later that day, berating China over its monopolisation of rare earths, nothing could have prepared anyone for what then ensued. 

The full implications of Trump’s threat to impose a further 100% tariffs on China began to sink in, and a landslide started to take place across the U.S. stock markets. The S&P lost 2.7%, and the Nasdaq 3.5% - huge movements for the stock market.

Such large tremors in the stock market were nothing to the full-on volcanic-like fury of the tiny crypto market. Total2, the combined market cap of all crypto, excluding Bitcoin, plunged nearly half a trillion dollars, falling from $1.66 trillion, down to $1.18 trillion in a matter of hours. 

Some of the smaller market cap cryptos nosedived, losing as much as 95% of their worth, while the big market cap coins like Ethereum and Solana lost 20%. Ripple (XRP) crashed a seemingly impossible 43.5%.

Total2 falls almost half a trillion dollars

Source: TradingView

The daily chart for Total2 shows the crazy descent in price that almost touched the deepest of the Fibonacci levels, sitting at $1.17 trillion. However, the buyback started almost straight away, and the price rose rapidly, regaining itself around $1.44 trillion before putting on another spurt on Sunday.

The Stochastic RSI indicators have turned back around and are signaling upside price momentum. By the time they reach the top again, it may be likely that the Total2 market cap could be at an all-time high again.

$ETH loses major $4,000 horizontal support then regains it

Source: TradingView

At one point the $ETH price fell through the major $4,000 support and even went below $3,600. Nevertheless, as can be seen in the daily chart above, a trendline held the price and a bounce took place from there. The major $4,000 support has been regained and it now remains for a possible confirmation of this to take place, which would bring the price back to the $4,000 mark before climbing higher.

$SUI not far from going to zero

Source: TradingView

One of the hardest-hit of the major layer 1 altcoins was $SUI. Almost in danger of going to zero, the $SUI price plunged 83% on Friday. The size of the candle wick that was left behind bears testament to the hair-raising slide for $SUI. 

Be that as it may, the price is now knocking on the door of the $2.81 resistance level. If the bulls can flip this into support again the bull market would be very much back on for $SUI. Retaking the $3.21 resistance level would be the next step.

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.