Majority of Cryptocurrencies Hover Below 200-Day Moving Average Following 'Black Friday' Crypto Crash

The cryptocurrency market continues to grapple with the aftershocks of the unprecedented "Black Friday" crash on November 10, which triggered a record-breaking wave of liquidations across digital assets. Despite modest stabilization over the subsequent weekend, a staggering 90% of tokens remain below their 200-day moving averages, underscoring persistent market fragility and lackluster sentiment.

Based on insights reported by Bitcoinist on November 14, noted crypto analyst Dark Post revealed that "approximately only 10% of altcoins listed on Binance are trading above their 200-day moving averages, leaving 90% trading below." This trend, he explained, mirrors a deeper structural issue. "This isn’t simply a corrective event. What we’re witnessing stems from systematic liquidations on a market-wide scale, highlighting the market's dwindling resilience and recovery potential," the analyst said.

Historic Liquidation Wave Redefines Market Dynamics

The selloff that unfolded on November 10 represents the most significant leveraged liquidation event in cryptocurrency history. Even leading altcoins—including Chainlink (LINK) and Avalanche (AVAX)—weren’t spared, with both tokens plummeting over 60% at the height of the crash. Although tokens partially regained some of their value over the weekend, most digital assets still remain in bearish territory, trading well below critical long-term trend indicators such as the 200-day moving average.

Dark Post drew upon historical parallels, observing that "phases marked by extreme fear, such as this, have occurred three times previously. Each was followed by temporary market rebounds." While this signals potential for near-term recovery, he emphasized the importance of caution and strategic execution during such periods. "Investors should shift their focus toward selectively accumulating high-quality projects with strong fundamentals," he advised.

Key Metrics as Benchmarks for Project Viability

The long-term survivability of individual crypto projects depends heavily on certain core metrics, according to Dark Post. He cited liquidity, developer activity, and on-chain usage as the foremost indicators to monitor when evaluating a project's durability in challenging markets. "Projects that can sustain robust levels of these metrics are more likely to endure and adapt amidst market turmoil," he explained.

However, the ongoing uncertainty surrounding market sentiment means investors should tread carefully, even when observing these metrics. The analyst cautioned against assuming that current conditions represent an ideal "buy-the-dip" opportunity. "Extreme fear can sometimes indicate areas of opportunity, but rebounds from oversold conditions often occur rapidly. The window for such opportunities can close quickly."

Market Outlook: Proceed with Caution

Despite the brief stabilization seen over the weekend, overall market sentiment continues to waver. Much of this volatility stems from a combination of macroeconomic concerns, dwindling liquidity, and diminished confidence among retail and institutional investors alike. As the market navigates this period of heightened uncertainty, the path forward remains murky.

Analysts and experts urge investors to adopt a measured approach during this period. Prioritizing long-term fundamentals over short-term gains could be key to navigating the crypto market’s ongoing turbulence. "Avoiding reckless speculation and preparing for continued volatility is essential," Dark Post concluded. "The crypto market has survived similar downturns in the past, but prudence remains the name of the game."

As the fallout of "Black Friday" continues to shape the future of digital assets, the coming weeks and months will provide crucial insights into whether the broader market can regain its footing—or if deeper challenges lie ahead.