• Bitcoin Cash dropped 5.10% after a sell signal on the 3-day TD Sequential indicator.
• A close below $465 may trigger a further decline toward the $420 support level.
• BCH trades at $485.39 as market cap rises to $9.65B, while trading volume declines 21.52%.

Bitcoin Cash has encountered technical pressure as a widely followed indicator highlights a possible shift in short-term momentum. The TD Sequential, applied on the 3-day timeframe, has issued a sell signal. This indicator has historically identified price exhaustion points during strong trends. Following the signal, BCH dropped sharply, closing the latest session at $484.41, down by 5.10%.

The cryptocurrency’s price briefly reached a high of $514.60 before the sharp decline occurred. Market participants observed this correction following a prolonged upward movement. Currently, Bitcoin Cash is priced at $485.39, reflecting a 0.14% gain over the last 24 hours. Despite this minor daily increase, the recent candle structure shows the growing bearish momentum.

$465 Support Level Gains Attention After Sharp Price Reversal

As Bitcoin Cash hovers below recent highs, attention shifts to the $465 support level. Notably, a daily close below this point may accelerate losses. Technical analysis suggests that failure to maintain above $465 could lead to a retest of the $420 level.

The recent price drop formed shortly after the TD Sequential flashed the sell setup near the $520 mark. Traders are now observing whether this key support holds. If buyers defend $465 successfully, Bitcoin Cash could stabilize near current levels before determining its next direction.

Market Metrics Show Divergence Between Price Action and Trading Activity

Parallel with the technical progress, market statistics indicate profound changes in activity. Market capitalization of Bitcoin Cash stands at $9.65 billion today, recording a slight 0.14% increase. 24-hour volume, on the other hand, fell dramatically by 21.52% to $246.11 million.

This market cap vs. volume discrepancy points to the possibility of short-term investor conservatism. The ratio of volume to market cap at 2.55% indicates relatively weak investor interest relative to recent price action.

Potential Drop to $420 If Downtrend Persists

In the future, $420 is the next resistance point should the bearish momentum persist. This is traditionally a good- buying area. In the meantime, traders will keep monitoring the price, particularly as the effect of the TD Sequential unfolds in the near sessions.