The crypto chart shows a falling wedge pattern and current support may define the market direction now
If the $2.87T level fails then traders may prepare for another drop toward the $2.82T support zone
Investors are watching closely as holding this level could bring new strength back into the crypto market
The total cryptocurrency market cap has reached a decisive support zone near $2.87 trillion, as highlighted by World of Charts. A breakdown below this level could trigger extended losses. The current move follows recent weakness observed across Bitcoin (BTC) and Ethereum (ETH), raising concern among investors.
Crypto Chart (Source: X)
This critical juncture could either sustain bullish momentum or lead to a deeper correction. At press time, the market cap stands at approximately $2.897 trillion. Traders are closely watching the behavior around this support to assess the next directional move. Volatility is rising as the market consolidates within a descending pattern.
Analysts have pointed to this level as essential for preserving bullish sentiment. Holding this zone could revive buyer confidence and signal market recovery.
Key Support Under Pressure as Sellers Test the Floor
On May 4, the crypto market dipped to a long-watched support level amid sustained downward pressure on price action. The chart provided shows the market forming a rising wedge, a pattern that typically signals a potential reversal. Currently, the wedge appears to be breaking down, challenging the lower trendline.
Two support levels are clearly marked on the chart. The first, immediate zone lies just below the $2.9T level, while a secondary, more robust support zone sits slightly above $2.82T. A break below both could spell further downside risk.
This market behavior aligns with prior warnings from analysts anticipating weakness following recent rallies. Price action suggests sellers are gaining control, pulling the market down from the upper trendline resistance. The recent red candles show a steady progression toward this vulnerable range.
Market participants are increasingly cautious, awaiting confirmation before re-entering long positions. Should this support hold, it may serve as a launchpad for recovery toward $3.1T. However, failure here could send the market cap tumbling below $2.8T.
Market Sentiment Hinges on This Crucial Decision Point
Investor sentiment now teeters on the edge as market participants brace for either continuation or correction. The previous tweet by World of Charts on May 3 warned of visible weakness in major cryptocurrencies. That prediction is now materializing, with total market cap falling in line with the outlined technical indicators.
World of Charts urged followers to watch for a hold at this level to confirm a bullish continuation. "If this break too, we may see more blood," the tweet cautioned. So far, the market has stalled just above this vital support, awaiting a catalyst for direction.
Crypto enthusiasts are increasingly focused on the outcome of this technical battle. Bulls must defend this level decisively to avoid a broader downturn. Bears, meanwhile, are pushing to invalidate support and initiate a larger correction phase.
The question now looms: Can the crypto market hold this $2.87T support and regain bullish momentum, or is a deeper plunge ahead?
A Historical Pivot in Market Structure
Previous data from April reveals that this level has acted as a launching point for major rallies. The market bounced from a similar structure in late April, pushing the cap above $3 trillion briefly. This repetition could either reinforce the support's reliability or expose it as a temporary illusion.
Volume trends suggest indecision, with no significant spike in buying pressure. Without a strong volume-led bounce, bullish traders remain hesitant. The horizontal support zones identified align closely with past resistance-turned-support structures, adding technical relevance.
Should the market break the $2.87T line decisively, traders may eye $2.82T next for a potential bounce. This second line of defense could provide temporary relief. However, if both supports crumble, a test of $2.75T or lower might follow.
The coming days may decide the trajectory of the broader crypto market for Q2 2025
