The recent market turmoil on October 10, often referred to as the Black Friday crash, resulted in significant losses for numerous cryptocurrencies, marking some of the steepest declines observed this year. Within moments, prices across various exchanges plummeted, erasing billions in leveraged positions and leading to a series of forced liquidations and flash crashes. While the majority of cryptocurrencies experienced drops ranging from 10% to 60%, certain tokens suffered even more drastic declines, with some briefly reaching near-zero valuations before regaining stability. These erratic fluctuations highlight the vulnerability of liquidity during market panic and the rapid shifts in sentiment that can occur once the turmoil subsides.
Cosmos (ATOM)
Cosmos (ATOM) was severely impacted during the Black Friday crash, with its price on Binance momentarily plummeting to $0.001, representing a staggering 99.9% drop. This was attributed to a “false print” caused by a glitch related to tick sizes, which incited widespread panic among traders. Binance explained that historical limit orders, some dating back to 2019, remained active on the platform. During the intense sell-off and absence of buying orders, these long-standing sell orders executed, causing prices to nosedive temporarily. The incident has been characterized as one of the most overt manipulations witnessed in the cryptocurrency market. According to data from Coinbase, which was not affected by the glitch, ATOM’s price fell from $4.19 to $2.99, representing a legitimate 32% drop within the day.
ATOM’s current price structure appears bearish on the daily chart, as it trades below a descending trendline and encounters resistance at critical Fibonacci levels. The trendline’s support is situated around $3.35, which ATOM must maintain. A daily closing price above $3.64 would signal the beginning of a potential recovery, while subsequent resistance levels are found at $4.11 and $4.45. Surpassing $4.45 could shift the trend towards bullish, potentially paving the way for a rise towards $5.32. Conversely, a slip below $3.35 could see prices retreat to $2.87, jeopardizing any rebound efforts.
Despite the bearish sentiment, a positive divergence has emerged. Between September 27 and October 11, ATOM’s price recorded lower lows, while the Money Flow Index (MFI), which gauges the volume and speed of money entering or exiting the market, indicated higher lows. This divergence is viewed as a classic bullish signal, suggesting that new capital may be entering the market amid ongoing price pressures. This implies some level of quiet accumulation, potentially driven by retail investors betting on a gradual recovery post-crash.
IoTeX (IOTX)
IoTeX (IOTX) also experienced a momentary drop to zero, reflecting a total decline of 100% during the crash on October 10, as reported by Binance. The exchange clarified that the price display issue arose from a reduction in decimal places for certain trading pairs, resulting in erroneous zero prices rather than actual market values. In contrast, data from Gemini’s IOTX/USD chart provides a clearer representation of market behavior, showing a decline from $0.024 to $0.018, marking a genuine 25% intraday decrease before stabilizing.
Currently, IOTX is trading within a descending triangle pattern, where established support and resistance levels are critical. The triangle’s base is at $0.018, which must be defended, while the token is presently hovering around $0.020, facing resistance at $0.024 and a stronger barrier at approximately $0.027. A daily close above $0.027 could indicate a breakout, opening the potential for further price increases. However, a dip below $0.018 would likely derail any recovery attempts.
The Chaikin Money Flow (CMF), which monitors money entering or exiting an asset, presents an optimistic signal at this juncture. Since October 7, the CMF has been steadily rising, indicating a positive divergence that often suggests accumulation by major holders, or “whales,” during periods of weakness. To summarize, while IoTeX’s trend remains bearish, the improving CMF and signs of accumulation indicate a level of confidence among larger investors. If price actions confirm a breakout above $0.027, IOTX may be poised for a rebound despite its significant losses during the Black Friday crash.
Enjin (ENJ)
Enjin (ENJ) was another token that experienced extreme volatility during the October 10 crash, flashing a price of 0.00001 on Binance, marking one of the most severe “zero-print” incidents of the day. However, according to OKX’s ENJ/USDT chart, the actual decline was from $0.063 to $0.021, representing a nearly 67% drop, making it one of the sharpest declines among gaming-focused tokens. Following this plunge, ENJ has shown resilience, rebounding from $0.021 to approximately $0.048, effectively doubling its price within a short time frame. Nevertheless, significant challenges lie ahead for its recovery.
The immediate resistance is positioned at $0.054, followed by a substantial supply zone around $0.060 to $0.074, where past rallies have encountered rejections. A successful breach of these levels would confirm sustained bullish momentum. Conversely, a decline below $0.048 could lead to target levels of $0.041 and $0.034, indicating that buyers need to defend current price levels to affirm a reversal.
A crucial indicator to monitor is the Bull-Bear Power (BBP), which assesses the balance between buying and selling pressure. The BBP has risen from its lowest point this year, suggesting that bearish influences are diminishing. However, it remains in negative territory, indicating that bears still exert some control over the market. In summary, while Enjin’s recovery from the crash lows demonstrates resilience, the process is not yet complete. A confirmed breakout above $0.054 would shift sentiment towards a more decisive bullish outlook, while any further rejections could result in continued consolidation at lower levels.
Special Mention: Avalanche (AVAX)
In contrast to the aforementioned tokens, Avalanche (AVAX) did not experience a glitch on Binance; its 70% decline was indeed real. The token dropped from its pre-crash level to a low of $8.53 before mounting a sharp recovery. Currently, AVAX has bounced back to around $22, driven by consistent accumulation from whales. The Chaikin Money Flow (CMF) has risen above zero and is continuing its upward trend, indicating robust buying strength. For AVAX to maintain its recovery from the Black Friday crash, it needs to stay above $22 and break through the $25 mark, with the next significant resistance zone emerging between $30 and $36.
