The recent decline in the cryptocurrency world has negatively affected altcoin projects. Investors are now looking for a new direction. But danger signals remain for the three cryptocurrencies. Let’s look at the details.
Altcoin Ethereum price may drop
Altcoin Ethereum (ETH) price is showing an impending downward trajectory, evidenced by the breakout of the ascending trendline. The breakout also caused a break below the critical support level of $1,687. This development reached the psychological benchmark of $1,200 with an intermediate support of $1,366, paving the way for a potential 27% price drop.
Additional technical indicators reinforce these observations. Also, the higher EMA 100 has recently crossed with the lower EMA 50 from a bearish perspective. Accordingly, this indicates a bearish market trend. Similarly, the histograms of the weighted average turned red. Also and solid bodies are located below the zero line. This was indicative of increased selling pressure for altcoin ETH.
What levels should be considered?
Given this scenario, traders may consider initiating short positions in the market after a confirmed close below the $1,620 level.
On the other hand, the position of the RSI within the oversold zone is important. Accordingly, it signals an impending price reversal. If the momentum feeds, altcoin Ethereum price will steadily rise above the $1,687 support level. It will also rise to a level above the ascending trendline. Such a move would allow the price to rise above $2,029 confirming the uptrend.
Ripple price peeks at key levels as downtrend continues
Altcoin Ripple (XRP) price reflects a significant pullback in recent gains following the positive conclusion of the SEC lawsuit. At present, indications of a continuing downward trajectory are becoming evident. The current price action closely follows the path drawn by the 200-period Exponential Moving Average (EMA).
The broader context conveyed by various indicators shows the possibility of further price depreciation potentially reaching the $0.411 level. On the other hand, this level is important as the second support threshold, which coincides with the lower border of the channel (shown in blue) that started in June. If this level fails to sustain the value of XRP, a long descent towards the $0.287 level is likely, which would mean a significant drop of around 45% from the current price.
Bearish pressure on altcoin MATIC
Altcoin MATIC, which is part of the Polygon network, has experienced a sharp drop in its price. Accordingly, it fell to $0.56. This level marks the lowest point reached in 2023. It also witnessed a staggering 17% drop over the seven-day period. The primary catalyst for this decline is the price of Bitcoin falling to $26,000.
Altcoin MATIC’s price woes have been exacerbated by the general bearish sentiment enveloping the crypto market. Altcoin’s performance has been trending downwards for the past few weeks. Accordingly, this situation caused the enthusiasm of the investors to decrease rapidly. It also ultimately led to the weekend turning into pessimism. In the past 24 hours, the number of transactions on the Polygon network has dropped to about 135,000 on a weekly average. This represents the lowest level of activity observed by Polygon since September 2022. Also, when we look at cryptokoin.com, it points to the lowest level in 11 months.
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