Analysis: DeepSeek R1 release has significant impact on AI-related token prices
This article is machine translated
Show original
Odaily Odaily News Today's crypto market downturn came after the release of DeepSeek R1 by Chinese artificial intelligence laboratory DeepSeek, which had a significant impact on the prices of AI-related tokens. The total market value of cryptocurrencies in the field of artificial intelligence has also been hit hard, falling 10% from $47.54 billion on January 26 to $42.50 billion at the time of writing. Trading volume increased by more than 42% in 24 hours to $3.55 billion, increasing the intensity of seller pressure. In addition, the downturn in the cryptocurrency market has been accompanied by a wave of leveraged liquidations. Leverage allows traders to borrow funds to increase trading positions, thereby amplifying potential gains and losses. The latest data shows that the crypto market has seen nearly $860 million in liquidations in the past 24 hours, of which $794 million were long liquidations. $260 million of Bitcoin long positions have been liquidated, and as of the time of publishing this article, liquidations are still ongoing. The decline in cryptocurrency prices today has caused the total market capitalization of all cryptocurrencies (TOTAL) to lose the critical support provided by the 50-day simple moving average (SMA) at $3.38 trillion on the daily chart. Moreover, the relative strength index (RSI) has fallen to 43 from the positive territory of 57 on January 24. This suggests that the market sentiment is turning bearish. If the sell-off intensifies, the total market capitalization of the crypto market may fall to the psychological support level of $3.20 trillion. Once this support is lost, the market may fall further to $3.1 trillion, which is supported by the 100-day SMA. Notably, this has been a dynamic support trendline for TOTAL since November 21. On the other hand, the revival of buying pressure may push the crypto market capitalization back above the 50-day SMA and reach the local high of $3.69 trillion on January 20.
Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments
Share