This week has seen a distinct bearish trend in the cryptocurrency market, with Bitcoin (BTC) finally falling below the $110,000 threshold. This decline has significantly impacted overall market sentiment, causing numerous other digital assets to hit multi-week lows.
Notably, during this bearish phase, several coins have garnered the attention of Nigerian traders. Today, STBL, HEMI, and Plasma (XPL) are the three most sought-after cryptocurrencies in that region.
STBL
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STBL, the native coin of the RWA-backed stablecoin protocol STBL, is trending among Nigerian traders.
As of now, the altcoin is priced at $0.4808, experiencing a remarkable 79% increase over the past week, and is on track for further gains, supported by favorable readings on its Balance of Power (BOP) indicator.
Currently, this indicator stands at 0.05. The BOP evaluates the strength of buying versus selling pressure over a set period, with positive figures indicating that buyers have the upper hand.
STBL’s BOP indicates strong buying interest in the altcoin despite the existing bearish trend. Should demand continue to rise, the token may surpass the resistance level at $0.4986 and aim to reclaim its all-time high of $0.6112.
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On the other hand, any decline in buying pressure may lead to a pullback towards the $0.4102 support level.
HEMI
Despite the overall market downturn, HEMI has achieved an impressive 109% increase over the past week, emerging as one of the trending cryptocurrencies in Nigeria.
However, there is a caveat. This significant rally has accompanied a dip in the token’s Chaikin Money Flow (CMF), creating a bearish divergence. Currently, this essential momentum indicator is below the zero line at -0.9.
The CMF gauges the flow of money into or out of an asset, with declining values during price rises suggesting weakening buying volume.
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This divergence implies that while HEMI’s price has risen, the rally may lack robust support from sustained buying, rendering it susceptible to short-term corrections.
In this case, it could lose recent gains, drop below $0.1273, and decline to $0.1065.
Conversely, if new demand enters the market to support HEMI’s rally, its value could push towards $0.1569.
Plasma (XPL)
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Recently launched Layer-1 coin XPL is also trending among crypto traders in Nigeria.
The Plasma blockchain’s native token, XPL, which focuses on stablecoin use, commenced trading on major exchanges like Binance and OKX on Thursday, witnessing a significant spike in trading volume since then.
Over the last 24 hours, the coin’s daily trading volume has surged by over 300,000%, reaching $7.12 billion. This dramatic increase in trading activity has accompanied a 54% rise in XPL’s price, indicating robust trader interest.
If this momentum continues, XPL’s price could exceed $1.2832, aiming for its all-time high of $1.4474.
However, the rapid increase in trading volume could drive the coin to unsustainable euphoric price levels. Once buyer exhaustion occurs, the altcoin may quickly lose momentum and face a pullback towards $1.1543.
