Ethereum Classic [ETC] leads the altcoin decline- Here’s the detailed report

• Ethereum Classic faces the weight of the bears as the FUD wave sends ripples across the altcoin market.
• ETC loses last week’s gains but there is evidence of buyers buying the dip.

The crypto market cap fell 4.48% in the last 24 hours, at the time of writing. Most of the wiped-out liquidity was from the altcoin market and Ethereum Classic was one of the coins at the forefront of the latest sell-off.

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A brief look at CoinMarketCap revealed that the top altcoins shed a substantial amount of value in the last 24 hours.

This decline was largely associated with the uncertainty caused by SEC chair Garry Gensler during a recent congressional hearing.

Ethereum Classic appears to be among the top coins caught up in the recent contagion.

Consider this- ETC fell by over 8% in the last 24 hours, wiping out all of the gains that it achieved in the second week of April.

The previous rally had resulted in a breakout from its megaphone pattern that prevailed since February. The breakout led to a stronger bullish expectation but ETC cooled down slightly since mid-February.

Source: TradingView

The selling pressure, at press time, pushed the alt below the 50% RSI level which suggested that the market favored the bears.

Switching to the 4-hour price chart revealed that the price was, at press time, oversold, but a slight recovery was in sight. This is because the price has retested short-term support near the $20.18 price zone.

Source: TradingView

While there is a significant prospect of a bounce back from the current level, it is worth noting that Ethereum Classic has so far lost slightly over $367 million from its market cap since 14 April.

However, it regained roughly $16 million from its 24-hour bottom.

Source: Santiment

Realistic or not, here’s Ethereum Classic’s market cap in BTC terms

Furthermore, Ethereum Classic’s on-chain volume fell significantly in the last seven days. However, it registered a slight uptick over the last day, likely associated with the accumulation after the dip. Furthermore, the daily volume surged back above $200 million.

Source: Santiment

Should investors expect a recovery?

Current observations suggest that the initial wave of sell pressure is cooling down. The slight market cap gain indicates that some investors are already looking to capitalize on the recovery.

Ethereum Classic bulls were taking a break before the latest crash, hence many buyers may see the current drawdown as an opportunity to buy back at a steeper-than-anticipated discount.

While the current expectations are bullish, it does not necessarily mean that the bears are done with their assault. There is still a probability of more downside if Ethereum Classic fails to secure enough bullish momentum.