A large staff of analysts, including analysts such as Benjamin Cowen, expects new lows for 6 altcoins in the short term.
Chainlink (LINK) price may visit $6.5 support
LINK price declined to $7.28 with the downward trend it has been continuing since last week. Meanwhile, it broke below an ascending parabolic support line and is currently in the process of falling below the nearest horizontal support zone.
Technically speaking, it has been bullish with a rising parabolic support line since hitting the bottom at $4.7 on June 10. This line supported the price several times. At one point, it helped the price retest the $8.50 resistance area. However, the altcoin later declined sharply from this level.
Although the LINK price collected buyers at $7.2 on August 1, it succumbed to sellers the next day. This indicates that the altcoin price may decline below the $7.2 support zone. If so, the next level of support will be at $6.6.
LINK weekly chart analysis
Despite the bearish expectations on the daily timeframe, the weekly chart is quite optimistic. This is because the altcoin price has been in an uptrend since between $5.5 and $9.5. Also, last week’s bearish candle falls inside the bullish candle for the week of July 17-24.
It broke the long-term descending resistance line on the weekly RSI. It is currently above the 50 level, indicating that the trend is bullish. Therefore, the current bearish action is likely a correction within the uptrend.
In summary, technical analysis suggests that LINK price may drop below the $7.2 support and drop back to 6.6. However, long-term prospects suggest that LINK price will continue to rise towards the long-term resistance zone at $9.5 once this correction ends. The short-term bearish outlook will be invalidated if LINK price rebounds strongly from $7.2 today and climbs above the lower high of $8.1.
Benjamin Cowen warned about this altcoin
The closely-followed crypto analyst is sounding the alarm about LTC completing its third halving cycle. Cowen says that after Wednesday’s halving, the LTC price will likely drop:
As mentioned a month ago, LTC tends to peak in June/July of the halving year and then enter the halving period. After the halving, history shows that you should soften your expectations for LTC until the post-halving year (2025).
According to its chart, Litecoin has historically rallied two months before a halving. It’s been down for about a year before rallying the next year. Litecoin is currently trading at $86.32, down 5% in the last 24 hours.
Altcoin investors are posting fake Dogecoin coins
A new warning against malicious projects using the DOGE name came from Dogecoin community member Mishaboar. Mishaboar urges extreme caution due to the proliferation of a large number of tokens bearing the DOGE name.
The projects in question went live during the week that Elon Musk rebranded Twitter as X. Dogecoin is expected to be added to the new platform as a payment method. Meanwhile, fraudsters turn this expectation into an opportunity with various advertising campaigns. As you follow on Kriptokoin.com, news about X has moved the price of various altcoins.
Be extremely careful, #Dogecoin. Many tokens carrying the "Doge" name are being launched on several (new and old) chains in these days.
These tokens have nothing in common with #Dogecoin and are created (sometimes with sizeable starting liquidity) by teams of scammers.
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— Mishaboar (@mishaboar) August 2, 2023
ARB, MATIC and ARB continue downtrend
First, Polygon (MATIC) is down 25% in the last 20 days and the bottom is not yet closed. After breaking below the bearish breakout zone between $0.760 and $0.714, altcoin investors are facing more losses. However, if MATIC price manages to surpass the $0.704 level, short traders will try their luck again.
A short entry at $0.704 will follow a steep 16% correction to $0.591, which remains below sell-side liquidity. A similar liquidity pool is below the $0.558 level. The remainder of the second target will be 20% of the total losses for investors.
Short deals will void if MATIC price produces a daily candlestick above the $0.760-0.714 zone. Such a move would indicate buyers are back in action and could push Polygon 9.68% to $0.834.
Ethereum Name Service (ENS)
ENS price is down 5.61% since it retested the $9,863-10,214 bearish zone on August 1. Looking forward, investors need to be cautious when considering buying ENS dips since it unlocked around 4.41 million on Aug.
Therefore, the token unlock event threatens the altcoin price with key levels such as $8,738, $8,321 and $8,026. The first level is the midpoint of the 49% rally from June 15 to July 14. The other two levels represent deeper bottoms. In total, ENS traders will face a total loss of 14% if the altcoin retests $8,026.
Although the outlook for ENS looks bearish, a break of $10.21 will invite the bulls to the scene. In such a case, altcoin bulls could target the $10,476 range again.
Arbitrum (ARB)
ARB price has lost 16% of its value as it reached $1,349 on July 17. The sellers’ hand became stronger after it broke below $1,178, which is the mid-point of the $0.990-$1.366 range.
Looking forward, ARB price could sweep buyer-side liquidity to $1,175. This will allow the bears to short and return 10% to $1,053. In a tough situation, the ARB faces a drop from $0.967 to $1,034. This move will increase the overall gain to 12% for short traders.
Regardless of the bearish outlook, the ARB will revive the sidelined buyers if it rebounds from $1.1378. Such a move would invalidate the bearish thesis and potentially trigger an 11% increase to $1,312.
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