Recently, several warnings have come to the fore, especially for five altcoins. There was an expectation of decline and short selling in these altcoins. Here are the coins and analyzes that analysts expect downward movement…
Leading altcoin should be ready for downside action for ETH
Investors’ attention has recently shifted away from Ethereum (ETH) and Bitcoin (BTC). However, ETH is on the verge of finally losing any signs of a bullish pattern. Recently, the altcoin has been hovering around $1,860, a similar range as it was seven days ago. ETH’s biggest concern is not going above the $2,000 zone. On the contrary, the potential to lose the hold at $1,800. However, if the crypto survives the market cap plunge, ETH could approach $2,000 and possibly rise above it.
On the 4-hour chart, ETH’s attempt to break above $1,900 faced overwhelming rejection at $1,899. The pause in the uptrend is linked to the tendency of traders to sell the asset on July 22 and 24. While $1,800 is closely watched, ETH is facing a key resistance near $1,890. Recent market moves show that the resistance is not losing momentum and pushing ETH below $1,870. Previously, buyers tried to push the price up to $1,846. However, this experiment did not provide a steady rise. Also, the Money Flow Index (MFI) fell sharply to 31.58. As a measure of market sentiment, the MFI measures the liquidity flow to an asset over a given period. An MFI value above 80 indicates overbought conditions.
Open interest in decline: Panic selling coming?
Conversely, when the MFI is 20 or below, it indicates an oversold condition. So, the current situation means that the market is home to a large number of sellers. Also, MFI fell below the previous low while ETH did not reach a higher high. If the trend continues, it will trigger a sell signal. But before confirming the bearish pattern, other indicators need to be consulted. According to data from Coinglass, the open interest of ETH has dropped to 205.25 million. When an open interest drops, it’s a sign that the market has turned liquid and traders may soon enter panic selling mode. However, the funding rate avoided falling into negative territory.
MASK price has fallen hard in the near term: what’s next for the altcoin?
Mask Network (MASK) price broke below a long-term pattern and an important moving average (MA) line. According to analysts, it is likely to continue to decline in the near future. Mask Network (MASK) price is trading inside an ascending parallel channel after a strong rally of more than 450 percent at the end of October 2022. This is a bearish pattern that leads to collapses in most cases. As a matter of fact, the price of MASK went below the formation and confirmed as resistance on June 21. In addition, analysts observe the existence of a double top pattern when they combine the June 21 high with the June 22 high of $4.
This is also a bearish pattern and supports the possibility of further declines. The daily RSI indicator is bearish, forming a bearish divergence and breaking below the 50 level. Therefore, MASK price is likely to drop to the support area near $2.7 in the near future. The weekly chart shows a similar bearish outlook as the price of MASK has dropped below the 20-week MA, which has provided support twice before. The 20-week MA is often used by analysts to identify long-term trends. Therefore, falling below this value indicates a return to a downtrend or a deep correction.
What does Litecoin look like before halving?
As cryptokoin.com reported, there are only four days left until Litecoin’s (LTC) halving, which will reduce the block rewards from 12.5 LTC to 6.25 LTC. While some in the crypto space had high hopes for blockchain ahead of the halving, the broader crypto market seems to have a different view. Litecoin’s price action has also been under the influence of bears, raising more concern ahead of the big event. Only 3000 blocks left until Litecoin’s upcoming halving. According to Nicehash, the event is expected to take place on August 3. Although this is a big event and many people are ambitious about Litecoin, the mining industry is witnessing a decline.
Coinwarz’s chart, for example, indicated that the blockchain’s hashrate has plummeted over the past few weeks. Not only that, Litecoin’s miners’ fees have also dropped, which is a negative signal for the swimming industry. Along with the number of miners, the popularity of Blockchain has also dwindled. This was evident from the decline in social volume last month. Whale activity and trading volume around LTC has also dropped, suggesting that investors are not interested in trading tokens at press time. However, LTC’s daily active addresses remained on the upside.
Like blockchain’s mining sector, price action took a hit last week. According to CoinMarketCap, LTC has dropped about 3 percent in the last seven days. At the time of writing, it was trading at $91.03 with a market cap of over $6.6 billion. However, Shan Belew, a popular crypto influencer, highlighted in a recent tweet that a rising falling wedge has formed on LTC’s price chart. This suggested that the coin could soon witness a bull rally.
What’s next for Chainlink?
Chainlink (LINK) made up almost all of its losses in Q2. The altcoin has surged over 50 percent from its low of $5 in mid-June to about $7.7 at the time of this writing. But price action has hit a familiar 2023 price ceiling and supply zone. Meanwhile, Bitcoin breached the range formation and fell below the key $29.5k range, weakening the coin’s structure. Weak BTC could further prevent LINK bulls from bypassing the supply zone of this 2023. The supply zone of $8.1 – $8.8 has been a very significant price ceiling in 2023. LINK faced heavy selling pressure during previous retests of the supply zone in mid-February and mid-April. In the mid-April retest, LINK lost more than 40% to stabilize at $5.
However, LINK’s recovery reversed all Q2 losses after reaching the supply zone again. After the recent price rejection, LINK fell as low as $7.3 in the first leg of the pullback. However, the altcoin’s recovery faced another rejection in the supply zone near $8. If BTC fails to drop below $29.0K, immediate support at $7.3 holds only the second pullback. In such a case, LINK bulls try to void the price cap. It targets the next resistance at $9.5. Specifically, $9.5 is another price ceiling for the second half of 2022. If BTC breaks below $29,000 and the support at $7.3 is broken, the next support levels will be $6.8 and $6.5. In addition, open interest (OI) rates declined after hitting over $280 million on July 20. At the time of this writing, OI was under $200 million. It emphasized the downward trend in the futures market.
Popular altcoin Lido continues to lose strength
The prolonged decline of Lido (LDO) in mid-July gave sellers an advantage. Shorts gained over 20% as LDO dropped $1.9 from $2.5. In the same period, Bitcoin lost the level of $ 30,000 and fell below the level of $ 29.5 thousand. Weakening BTC has encouraged short sellers to look for more ground. Lido, on the other hand, has been in a bearish trend since mid-July. With weak BTC, LDO’s price action could stop at the $1,974 resistance level. In such a case, late sellers may seek re-entry at the $1.97 resistance level. Conservative sellers can target the mid-July $1.87 level. However, aggressive sellers may target $1.82, the low of the previous June range. Both scenarios can offer a modest RR (Risk Reward ratio).
Over the past few days, the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) have remained below the critical threshold of the 50 and zero marks, respectively. This situation strengthened the hand of sellers by showing the buying pressure and weakening of capital inflows. The belief of sellers shown above is also confirmed by Coinalyze’s 1-hour chart. In particular, CVD (Cumulative Volume Delta) has recorded a consistent decline since July 26. This showed that sellers control the market. Although the OI rate also decreased in the same period, it made a U-turn as of July 28. However, bulls may be hopeful with the recovering OI if BTC strongly rebounds to the lows of the $29.5K range.
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