Crypto Market Drops 2.95% as Altcoin Weakness Persists

The TOTALES index, which tracks the crypto market excluding stablecoins, fell 2.95% to approximately $1.85 trillion, slipping below its 20-day exponential moving average of $1.89 trillion. The index has been capped by resistance between $1.94 trillion and $1.96 trillion since July, traders said. The index slipped below its 20-day EMA. Traders said reclaiming that level is a near-term positive. The more important test is the resistance zone between $1.94 trillion and $1.96 trillion, which has capped rallies since July. Below $1.84 trillion, the next support is $1.80 trillion, followed by the June low zone around $1.74 trillion to $1.76 trillion, according to traders who track the levels. The index's failure to reclaim the 20-day EMA keeps the near-term bias negative, traders said.

Market capitalization excluding Bitcoin, Ether, and stablecoins stood near $374.5 billion, below a descending trendline that has capped rallies since May, traders said. The trendline sits near $390 billion. A break above $390 billion could open the path to $400 billion to $405 billion, traders said. The next support below $370 billion to $372 billion is $360 billion, the June low, they added. The descending trendline has been in place since May, and each attempt at a breakout has failed, traders said. The divergence between the two market-cap measures suggests Bitcoin and Ether have led the recovery while altcoins have lagged, traders said. The altcoin market cap has posted lower highs since May, reinforcing the view that the rally lacks breadth, traders said.