The total crypto market cap dropped by $43 billion on May 12, now standing at $3.28 trillion, based on TradingView data. This drop comes after several days of upward momentum and marks a key change in short-term market direction.
This $3.28 trillion level is acting as a support. If it breaks, the next level to watch is $3.16 trillion. The sudden dip adds pressure on altcoins and Bitcoin. The previous rally had pushed the crypto market cap toward $3.40 trillion. Now, market participants are reacting to the correction.
The crypto market downtrend halted the gains seen earlier this week. The sharp drop also raises questions about overall trading sentiment, especially among altcoin traders. Data confirms a loss of momentum across large-cap tokens.
Bitcoin Hits $105,079 But Struggles to Break Higher
Bitcoin reached a high of $105,079 on May 12, 2025, before pulling back to $103,906, based on TradingView’s BTCUSD daily chart. This is the first time since February that Bitcoin has retested the $105,000 resistance zone.
The price opened the day at $104,138 and touched a low of $103,745 during the session. However, Bitcoin could not hold above the $105,000 mark, showing clear resistance around that level. This price zone acted as a top during the previous rally in December 2024 and is now being tested again.
At the same time, the Relative Strength Index (RSI), a momentum indicator, stands at 73.38. Values above 70 usually suggest overbought conditions, meaning the asset may be due for a slowdown. The RSI previously stayed below 70 since late March but climbed back above that level in early May. This signals strong buying in recent sessions, though it may also limit upside if demand cools.
Meanwhile, the 50-day Exponential Moving Average (EMA), a trend indicator, is currently at $92,523. Bitcoin remains well above this level, indicating it is still in a broad uptrend. The price rally began in mid-April when Bitcoin traded below $70,000. Since then, buyers pushed it up by more than 30%, supported by strong volume.
Still, the $105,000 resistance zone has capped the rally so far. If Bitcoin manages to break and hold above this level, the next chart resistance appears near $109,588. That was the previous high recorded in early March 2025. On the downside, if sellers push the price lower, Bitcoin may find support around $100,000, a psychological and technical level observed in recent pullbacks.
Volume on the daily chart shows steady activity, with 268 BTC traded at the time of reporting. This reflects moderate interest but not a breakout in demand. The candles also show smaller real bodies in the last two days, which often indicate hesitation among market participants.
In short, Bitcoin is testing a key resistance level. Price action, indicators like RSI, and the position above the 50-day EMA show strong structure, but the $105,000 zone remains a major hurdle for now.
Arbitrum Price Drop Leads Altcoin Losses
Arbitrum (ARB) dropped to $0.4568 on May 12, 2025, after reaching a session high of $0.4639, according to TradingView’s ARBUSD 4-hour chart. The token opened the session at $0.4601 and reached a low of $0.4553. The current price shows a 0.72% decline for the session.
ARB previously broke above $0.500 on May 11 but failed to hold that level. Price action turned bearish shortly after, pushing the token back below the $0.473 resistance zone. This level acted as support earlier in the rally but has now flipped into a ceiling.
At the time of writing, Arbitrum is hovering just above a short-term range between $0.440 and $0.460. If the price continues to fall, the next visible support sits around $0.427, a zone tested during pullbacks in early May. Below that, the 50-period Exponential Moving Average (EMA) stands at $0.3814. This moving average provides dynamic support and reflects the overall trend.
Meanwhile, the Relative Strength Index (RSI) stands at 68.86 on the 4-hour chart. This indicator measures price momentum. RSI readings above 70 suggest an asset may be overbought. The recent drop from an RSI peak of 78.77 shows reduced buying interest. If the RSI dips below 60, selling pressure could increase further.
Trading volume for the session reached 2.09 million ARB. This level of volume supports the recent price movement and signals active participation from traders. However, volume has decreased compared to the May 10–11 surge, showing less strength in the current move.
The recent structure on the chart shows a rapid climb followed by sideways movement. Candlestick patterns suggest indecision, as buyers and sellers are testing control over short-term momentum. Until ARB breaks back above $0.473 or below $0.440, this consolidation may continue.
Price data and indicators confirm that Arbitrum is currently facing resistance after a sharp rally. The token gained over 50% between May 8 and May 11 but now shows signs of cooling off.
Lido Confirms Ethereum Staking Is Safe Amid Crypto Market Uncertainty
In response, Lido’s decentralized autonomous organization (DAO) held a vote to rotate the oracle address. This action disabled the attacker’s access and restored control over the affected module. According to Chorus One, there is no evidence of additional compromise within the system.
The platform confirmed that staking operations continued without disruption. Users could still deposit and withdraw staked ETH as usual. Validator performance also remained stable throughout the event, and the protocol infrastructure functioned normally.
On the market side, Lido DAO’s governance token (LDO) closed at $1.086 after reaching a session high of $1.119. The token opened at $1.098 and dropped slightly during the day. TradingView’s LDOUSD chart shows the price dipped by 1.09% on the daily timeframe.
Meanwhile, the 50-day Exponential Moving Average (EMA) sits at $0.913. LDO is still trading above that average, showing that the broader price trend has strengthened in recent sessions. This rally began earlier in May, as buying interest picked up following the token’s low near $0.70.
The Relative Strength Index (RSI), a technical momentum indicator, reached 68.16. This suggests LDO is close to entering the overbought zone, which starts at a reading of 70. The RSI had previously hovered below 50 in April, but climbed sharply during the May price recovery.
Volume during the session was 998,020 LDO. While not the highest recorded, the figure reflects consistent trading activity during the recovery from April’s decline.
Lido’s swift technical response and communication helped contain the impact of the incident. While the exploit briefly raised concerns about oracle risks, the token’s price and protocol performance remained steady following the resolution.