During the week we are about to leave behind, the prices of most altcoin projects have been on the rise. However, analysts cannot maintain their optimism for the next week. Here are four altcoins traded on Binance that are likely to drop this week, according to analysts.
The first altcoin on the list: MATIC
The price of Polygon (MATIC) has skyrocketed by over 43 percent over the past 30 days. However, the positive sentiments arising for the crypto industry are not the only possible reason supporting the MATIC price increase. On-chain data shows that a large whale transaction could result in a price increase. According to Santimet data, the largest altcoin transfer so far this year took place on January 25. This trade came just before the last 20 percent jump.
🐳 On Wednesday, the largest $MATIC transfer of the year occurred just prior to this +20% pump. This address had already been holding 585k #Ethereum as well. Often times, just one or a few whale addresses is all it takes, like in this #Polygon example. 👀 https://t.co/9qALIlE5Lu pic.twitter.com/EjqIOld5ml
— Santiment (@santimentfeed) January 28, 2023
As you dig deeper, the data shows that 30 million MATICs were moved in a single transaction. A whale address moved $34.3 million worth of MATIC to Binance. This move may indicate that the whale wants to sell Polygon at a higher price to make more profit. Selling can trigger a drop in price. WhaleStats reports that Polygon has topped the list of top 10 tokens used by trading volume among the 500 largest BSC whales in the last 24 hours.
Those who expected a decrease in the FIL took action
On the other hand, analyst Razi Khan’s Filecoin price analysis shows that the bears have taken control over the past 24 hours, with the price dropping almost 3 percent to $5.19. The support level is around $3, with the price currently in the hands of traders expecting a drop. On the 24-hour candlestick chart for Filecoin price analysis, it can be seen that the price has fallen in the last 24-48 hours, recording back-to-back red candlesticks for the first time since January 15. Despite the minor decline, the price remains above the 50 and 100 DMAs and the key 50-day exponential moving average (EMA) is at $5.13.
With the next major resistance identified at $8, FIL price can be expected to correct further before the next rally. The 24-hour relative strength index (RSI) is trending bearish with the price as current levels are above the 60 mark. If the sellers continue to dominate the price action, the RSI is expected to drop further. Also, the MACD curve shows a downtrend in place as the trendline approaches the signal line. Transaction volume increased by 11 percent in the last 24 hours, and it is thought that salespeople are behind this increase.
Litecoin has a short-term regression
Litecoin (LTC) is in third place on the list of altcoins traded on Binance, which is predicted to drop this week. A one-day Litecoin price analysis shows that the bearish momentum has continued over the past few days and remains the same today, according to analyst Derrick Clinton. After the last drop, the price declined as low as $88.02. According to the analyst, the relative strength index (RSI) is currently at 64.39, which indicates there may be more downside pressure in the market.
Looking ahead, the moving average indicator shows a bearish trend. This indicates that the market may move further down in the short term. Also, Bollinger Bands are increasing, indicating that more downtrends are taking place as volatility increases. The upper band of the Bollinger Bands indicator touches the point of $91.71, while the lower band is located at a margin of $81,388.
However, the 4-hour Litecoin price analysis shows further declines in prices. Market volatility is following a decreasing trend, causing the cryptocurrency to be less susceptible to volatile change at either extreme. MA 50 and MA 200 are both below the current market price. This indicates that the bears are controlling the market. The RSI is currently at 48.88, which indicates that the market could potentially move further down. All in all, Litecoin’s price analysis shows that bears are controlling the market and the price is likely to move lower in the short term.
Bears dominate AAVE too: These levels are important for altcoin
Finally, AAVE is also at stake, according to analyst Editah Patrick. Aave price analysis shows a bearish trend in the market that has been going on for several hours. The bears took control and pushed the AAVE price to $85.33. This is currently the lowest level AAVE/USD has seen in a while. According to the analyst, the main force behind this drop in price seems to be selling pressure and buyers are not keeping up with the selling pressure.
The bulls have so far failed to break the resistance at $88.42, which only adds to the bearish momentum. The MACD is in the bearish zone and continues to move downwards, while the RSI indicator is bearish as it moves into the oversold zone. The 4-hour chart also shows that bearish pressure will continue to drive the price down unless buyers step in and take control. The moving average indicator is also trending downward with the 50-MA line now falling below the 200-MA line.
The moving average indicator also continues to point down, showing that the bears may remain in control for a while. The RSI is currently at 73.18, which suggests there is room for further declines in AAVE/USD. Selling pressure is building as the MACD is trading in the bearish zone and the signal line is moving below the MACD line. Overall, Aave price analysis shows that the token has been moving down in recent days due to strong selling pressure.
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