BTC drops below $25,000 as XRP and ADA cryptocurrency drop

Cryptocurrencies fell on Thursday with bitcoin (BTC) falling below $25,000, XRP and Cardano’s Ada (ADA) extending 24-hour declines to 7.4%. CoinGecko data showed that the total market cap has lost 3.8% over the past 24 hours.

There could be more drops in store as some traders are suggesting that bitcoin could drop as low as $23,500 based on price chart analysis.

“Bitcoin retreated to local resistance levels from August last year to February this year,” Alex Kuptsikevich, senior market analyst at trading firm FxPro, said in an email to CoinDesk. “The bulls may try to keep selling near this level, but the current decline is still within the descending channel that has been in place since April.”

A descending channel indicates a downtrend in an asset that is characterized by prices making lower highs on short-term timeframes.

“The most important support for bitcoin is near the 200-day moving average – now at $23.6K and pointing higher,” Kuptsikevich added.

ADA’s drop means it fell more than 20% in the past week after 12 other tokens were named as collateral in a lawsuit by the US Securities and Exchange Commission (SEC) against cryptocurrency exchanges Binance and Coinbase.

XRP erased all gains from the rally earlier this week as the markets digested the “Hinman emails” from the Ripple Labs filing on Tuesday. Emails from William Hinman, former director of the SEC’s corporate finance division, have been released to the public in connection with the SEC’s lawsuit against Ripple.

Meanwhile, ether (ETH) is down 6.4% over the 24-hour period, while ether-tracked futures have posted the highest sell-offs among the majors in the world. 57 million dollars Of the $143 million total across all crypto-tracking futures.

Liquidation refers to when an exchange aggressively closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. It occurs when a trader is unable to meet the margin requirements for a leveraged position, i.e. he does not have sufficient funds to keep the position open. Large liquidations can mark the local top or bottom of a sharp price move, which may allow traders to position themselves accordingly.

USDT balances on Curve’s popular 3pool, a stablecoin exchange pool made up of USDT, USDC, and DAI, rose more than 72% early Thursday, indicating that traders have exchanged tens of millions of USDT for USDC and DAI coin ( DAI) ).