Within cryptocurrencies, we look at FET, ADA, PEPE and BNB. There is a falling market especially after the last SEC move. Let’s see which numbers started to stand out.
FET showed a bearish trend
Altcoin FET has been bearish for the previous 7 days. The bulls failed to break above the weekday FET high of $0.2513. The resistance at the 24-hour high at $0.1878 caused a drop. Finally, the 90-day low of $0.178 came. Negatively accentuated decline still continues. FET fell 1.14% from its previous close to $0.1824. The bull-bear rivalry continues. Accordingly, if the bulls regain control of the market and break the $0.1878 resistance level, the next target for FET will hit $0.1925. However, if the bears continue to dominate, there is a test of the $0.1775 support level.
While this was the case for FET, Cardano was the subject of an oversold. However, Cardano’s technical data point to a possible recovery in the future. For example, the continued token recovery comes a day after the daily relative strength index (RSI) dropped to 20, the most oversold since March 2020. On June 12, the ADA price rose 2.25% to $0.28. It’s up about 27% from a six-month low of $0.22 last week. The rally came along with gains elsewhere in the crypto market. He also pointed out that investors are buying the bottom.
oversold
Oversold RSI readings typically precede a consolidating or rebounding price move. For example, the ADA price had increased 900% four months after the oversold readings in March 2020. This was also due to the Federal Reserve’s quantitative easing policy, which boosted upside sentiment in risky markets. However, the Fed is poised to continue raising interest rates as inflation continues. Accordingly, this will eliminate the excess cash in the market. In addition, the SEC’s crypto pressure has created unfavorable market conditions for crypto assets like ADA in the US. Therefore, an oversold recovery, if it happens, could be weaker than what the market witnessed after March 2020. On the three-day chart, ADA is in the $0.247-$0.382 range, similar to the price trends in January 2021 and January 2023 as shown below.
Therefore, a rebound from the $0.247 support could initiate an uptrend in ADA towards $0.382 by October 2023. The resistance at $0.382, which is up 40% from current levels, also coincides with the 200-3D EMA (red wave).
PEPE lacks solid support
Apart from FET and Cardano, let’s look at PEPE. On June 6, PEPE found significant support at $0.0000001. This indicated an increase in buying pressure. However, the token faced resistance at $0.00000122. It ultimately led to a sharp drop in price. According to the 4-hour chart, PEPE has repeatedly tested new support levels. However, he could not find a balance. The fact that this happens over short periods of time indicates that the bears are maintaining the pressure. However, it is difficult to find a suitable entry point for PEPE given its current trend. Besides its downward sloping move, the 20-day EMA (orange) was above the 9-day EMA (blue). Usually this indicates that the price may remain in a downtrend in the short term. But as the 9 and 20 EMAs are close, a potential crossover could occur with the possibility of a reversal forming soon.
Moreover, the Relative Strength Index (RSI)’s bearish divergence at 34.96 and its proximity to the negative zone indicated more bearish control. So, if the bulls are looking to prevent another significant drop in price, there will be much more buying pressure at $0.00000088 unless the price of PEPE falls further. As a result, this makes it difficult to find a solid long position. Meanwhile, van de Poppe is not the only analyst to comment on a rally. On June 9, YouTuber Altcoin Sherpa tweeted that PEPE could move upwards. However, he added that it depends on the condition of the 0.5 Fibonacci retracement level. At the time of writing, the intraday price of PEPE was $0.000000875. Also, 24-hour trading volume dropped 30.38% to $114.15 million. Therefore, PEPE acts just like FET.
An ascending triangle pattern for BNB
BNB (BNB) price has been trading inside an ascending triangle pattern since May 2022. This is a bullish pattern that leads to a breakout in most cases. However, the price of BNB has not been broken twice since then (green ellipse). This indicates that there is no buying pressure at higher levels. Indeed, after two failed attempts, BNB price finally broke down from the triangle with a major bearish candle last week. The invalidation of a bullish pattern is usually followed by a significant drop. Because this is considered a bull trap. A downward move equal to the height of the pattern when measured from the breakout point will bring the price of BNB down to $104. This corresponds to a decrease of more than 50% from the current level. The weekly RSI indicator has dropped sharply below the 50 level. Therefore, it supports the possibility of further declines as it is sloping downwards.
Looking at Cryptokoin.com, the 4-hour RSI indicator created a significant bullish divergence in the oversold zone. It went above the resistance line. This signals a potential short-term recovery. In such a case, the price of BNB could rise to the previous horizontal support level of $265. However, candlesticks on the 4-hour timeframe are predominantly high-volume engulfing candles. This shows that bears are controlling the market. Therefore, this can be seen as a dead cat bounce. Also, BNB price could reverse towards the minor resistance levels at $240 and $254.
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