According to crypto analyst Filip L, Polkadot (DOT) bulls have knelt in the crypto turmoil. The analyst also predicts two more altcoins to drop. Analyst Akash Girimath says there will be a collapse in the price of Phantom (FTM). Finally, analyst Aaryamann Shrivastava warns that the Shiba Inu (SHIB) could drop to December 2022 lows.
“DOT risks nose diving”
Polkadot sees investor sentiment shaken again. Since last week, traders have been preparing for another short negative market shock in the altcoin space. This isn’t because FTX or a stablecoin has crashed, but because a major payment service provider has withdrawn from cryptocurrencies. With this service provider gathering his tent and leaving the crypto industry under rumors of bankruptcy, money transfers can become very uncertain. Also, fund transfers cannot be guaranteed to arrive at the correct crypto exchange or portfolio company.
Meanwhile, the Silvergate news you’ve been following on Kriptokoin.com isn’t helping at all as DOT is trying to break out of a bearish triangle. Another downside pressure is possible with a test and break of $5.74. This paves the way for another sell-off towards $5.31 as the bulls are ready to buy the price action as the Relative Strength Index (RSI) will deepen into the oversold zone.
DOT 4-hour chartIf some tailwinds occur as another service provider steps in to fill the void left by Silvergate, a quick backtest could be made at the red descending trendline. A breakout trade could see some follow-through near the 200-day Simple Moving Average towards the top $6.10. A key level higher than $6.23 may be achievable for the bulls, but it seems highly unlikely due to the current narrative.
ADA bulls are slaughtered
Cardano fell nearly 6% in the European session on Friday, when the first reports of Silvergate withdrawing from the crypto business. ADA recently traded to break out of the bearish triangle and faced some sharp rejections. Another existential crisis is possible with the current headwinds for altcoins with a first drop towards $0.32. When the level breaks under the pressure from the completion of the bearish triangle, the $0.30 in hand seems to have given a 10% lower leg.
ADA 4-hour chartWhere one door closes, another may open, and Silvergate may be replaced by a new service provider. This could create some calm water in the altcoin space. Thus, it could be possible for ADA to quickly break out of the red descending trendline with a revaluation near $0.37.
XRP bulls set up their own bulls this time
Ripple price was not ready to hit a new high for this year not so long ago and even notched the $0.48 level on the upside as a clear recovery rally and uptrend was noticed. However, markets could quickly change the mood overnight as the bulls drop the ball and start posting gains in the rally since January. With this relentless profit-taking, the bulls kicked their feet and dropped XRP to $0.37.
XRP could trade even lower as several big risky events are looming this week. If Jerome Powell confirms that current inflation levels need a longer restrictive policy, his message may already be enough to boost XRP to $0.34. U.S. employment numbers due Friday may be stronger and more resilient. This could trigger expectations that the Fed will raise even more. Thus, XRP is ready to bottom at $0.30 after this news.
XRP daily chartXRP will rise even higher if Powell confirms that inflation still continues to drop and the current increases are only one-off. Add the word ‘inflation bearish’ a few times and XRP will quickly reach $0.42 and surpass it with $0.48 as the profit target for the end of next month.
Phantom price continues south
Altcoin price is surging south in a resurgent move after the 9-day Exponential Moving Average (EMA) flipped from support to resistance on February 19. The descending channel also shows the ongoing downtrend for FTM. As long as the altcoin continues to trade within the confines of the technical formation, a reversal seems unlikely.
Meanwhile, traders should wait for general pressure from the 9-day EMA at $0.429 to push altcoin price below the immediate support of $0.400. If sellers continue to dominate the markets, FTM could break the lower limit of the pattern at $0.375 and tag the 100-day Simple Moving Average (SMA) at $0.350. In a dire situation where the Bitcoin price continues to drop, investors can expect the FTM price to drop suddenly and tag the 200-day SMA at $0.290. Altogether, this move will represent a 28% drop and is likely where sellers will relinquish control.
FTM 1-day chartWith all signs pointing to an ongoing downtrend, the bulls must embrace the midline of the chart formation and break above the 9-day EMA to create a path north. Additionally, a daily candle close above the 50-day SMA at $0.470 in Phantom price invalidates the bearish thesis described above. In such a case, Phantom price could spike 11% and tag the $0.523 resistance level.
SHIB price will drop even more!
At the time of this writing, the Shiba Inu (SHIB) price is trading at $0.00001102 after falling almost 12% last week. The altcoin has turned the support level to the critical resistance at $0.00001189 and is now close to losing the $0.00001000 support. The Relative Strength Index (RSI) has lost the support of the neutral line at 50.0 and is rapidly falling, sitting in the bearish zone. A similar bearish pattern can be seen in the Moving Average Convergence Divergence (MACD) indicator, which has not been bullish for nearly a month.
Shiba Inu MACD and RSIIf SHIB price sticks to these conditions, it could decline further and test the critical support at $0.00000966. Losing this support would cause the bears to dominate the price momentum, resulting in a 26% drop from the December 2022 low to $0.00000791. However, as observed in the RSI, the extreme bearish will cause higher selling to push the indicator into the oversold territory below the 30.0 mark. This zone is usually indicative of a trend reversal or at least a small increase to correct a price drop. The bulls will have the opportunity to push the SHIB price up during this time.
SHIB 1-day chartHowever, the altcoin will need to not only turn the critical resistance at $0.001189 to support, but also tag the resistance at $0.00001395 to initiate a sustainable recovery. This will invalidate the bearish thesis and allow SHIB price to rise above its year-to-date high of $0.00001472.
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