According to crypto analyst David, the leading altcoin is ready to drop further. Analyst Aaryamann Shrivastava says ADA bearish momentum has reached Covid-19 collapse levels. Another analyst, Konstantin Kaiser, is getting bearish signals from BCH and CRO. Finally, analyst Christian Encila notes that the DOT has entered bear territory.
Leading altcoin price ready to drop further
The price of Ethereum (ETH) has been rising with a rising support line since June 2022. During this period, it reached a local top at $2,142 before starting a correction. On May 15, 2023, the price bounced from the support zone to $1,770 (green arrow). Thus, it formed a morning star formation (green ellipse). This is a bullish pattern that usually leads to an uptrend reversal.
However, the bullish pattern was invalidated as the price broke below this support zone last week. This trapped the bulls. Also, a wave of sales often followed. So it’s an extremely bearish development. In such a case, it is possible for ETH price to decline to the next support level of $1,470, which consists of a horizontal support zone and a long-term ascending support line. The weekly RSI indicator broke below the uptrend line. This supports this possibility as it shows a downward slope.
ETH weekly chart / Source: TradingViewThe most likely outlook suggests that ETH price will continue to decline in the near future. The potential target for this downside move is $1,470.
Is Cardano (ADA) price poised to recover?
The altcoin price recorded a 27% drop in a week from June 5th. It is now trading at $0.27. The market seems stable right now. However, the bearish momentum after the crash caused ADA to be significantly oversold.
ADA 1-day chartThe Relative Strength Index (RSI) has dropped into the oversold territory below the 30.0 mark. It also dropped to 20.53 at the low of the cycle. The last time the indicator was at this level was back in March 2020, when the Covid-19 outbreak was at its peak. The crypto market suffered a massive crash at that time due to the dire macroeconomic conditions. But the current collapse also includes the contribution of regulatory pressure.
Cardano RSIWhile it took months for the market to recover in 2020, conditions could improve much faster this time around. Indicators for this lie in the fact that the Market Value to Realized Value (MVRV) ratio is currently at its lowest level for the year. Currently, the MVRV rate is far from the “opportunity zone” where a rebound in price action has historically followed. As far as ADA is concerned, the altcoin seems to have bottomed out. This makes a jump the most likely scenario.
Cardano MVRV rateHowever, ADA holders are reasonably startled right now. Therefore, the price recovery may not find much support from investors this time. Whale trading volume, which peaked in May, has decreased by about 30% in the last two weeks. It is also expected to decrease further.
Cardano whale eventSo if an asset’s most important cohort steps back, not much can be expected from individual investors. Therefore, the altcoin will have a tough job until it rallies above $0.35, signaling a decent recovery. Therefore, it is possible that skepticism among investors will continue.
This altcoin is in a bear trend
The daily chart continues to exhibit a ‘Death Cross’ pattern confirming the prevailing bearish trend in the short to medium term.
BCH price chart / Source: TradingviewAdditionally, the MACD is gradually receding in a downtrend. Moreover, the MACD lines continue to cross in a downtrend. Also, the Relative Strength Index (RSI) is gradually approaching the oversold zones. The short-term bearish trend is further confirmed by the presence of a ‘Death Cross’ on the 4-hour chart. However, it is worth noting that the MACD indicator is showing a clear bullish signal. The MACD histogram, on the other hand, shows a bullish trend. Also, the MACD lines crossed in a bullish style.
BCH 4-hour price chart / Source: TradingviewMoreover, the altcoin has witnessed a strong recovery in the support zone, which ranges from around $97 to $113. This resulted in a notable increase in price of about 15.3%. If BCH continues its upside momentum, it will face notable Fibonacci resistance levels near $1114.8 and around $130.
Bearish signals coming for CRO
The daily chart reveals clear bearish signals. Although the RSI is in oversold zones, it does not offer any bullish indicators. Moreover, the MACD lines crossed in the downtrend while the MACD histogram continued to decline in the downtrend.
CRO price chart / Source: TradingviewAdditionally, the presence of a Death Cross on the EMAs confirms the bearish trend in the short to medium term. If Cronos manages to rally, it is possible to face additional resistance at the 50-day EMA near $0.062. There is also a Death Cross on the 4-hour chart. This confirms the short-term bearish trend.
CRO 4-hour price chart / Source: TradingviewHowever, the MACD histogram is currently showing bullish momentum while the MACD lines are close together. It is also possible that this could potentially cross into a bullish or bearish form.
This altcoin is entering bear territory!
As you follow on Kriptokoin.com, Polkadot (DOT) was involved in a lawsuit targeting Binance. The SEC did not mention DOT as a security. However, the case still raised concerns. This contributed to the significant drop in value last week. The market’s reaction to this classification, coupled with the prevailing macro headwinds, has caused the price of the DOT to plummet.
However, the downward trajectory of DOT’s value on June 10 showed signs of easing. It also gave the asset a chance to reverse some of its recent losses. Despite this glimmer of hope, the road to recovery for DOT remains challenging. As of now, the DOT continues to face a significant decline, with a seven-day decline of 9.31%. The current price of DOT is $4.65. This significant drop in value has raised questions about the asset’s ability to regain its previous strength.
DOT 7-day price action / Source: CoinMatketCapAlthough there has been a minor rally of 0.45% in the last 24 hours, the overall trend for the DOT remains bearish. This raises the possibility that recent market conditions will further disrupt DOT’s recovery efforts by convincing sellers to re-enter the market.
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