April ended with a bullish run for the cryptocurrency market. However, the entire month of May was bearish, showing that the market was in a corrective state. There is hope that the uptrend will reverse in June. However, the worst is yet to come for the 4 altcoins due to bearish formation, according to analyst Valdrin Tahiri.
Cardano at risk of losing critical support
ADA price has followed an ascending support line since the beginning of the year. In doing so, it hit a year high of $0.46 on April 15. However, the price has since dropped. After the first bounce on May 11 (green icon), the price risks falling once again on May 26. However, another leap followed later.
The line has been in place for 151 days, so breaking it would likely result in a significant drop. In this case, the nearest support area is at $0.30, down 19% from the current price. However, if the bounce continues, it is possible for ADA to start an increase towards the $0.45 resistance zone instead.
ADA Daily Chart / Source: TradingViewRSI values are mixed. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell an asset. Data above 50 and a bullish trend indicates that the bulls still have an advantage. Data below 50 indicates the opposite. While the indicator dropped below 50 (red icon) at the end of April, it is currently in the process of regaining the line.
This altcoin price hits new year low
As you follow on Kriptokoin.com, the price of ALGO started a jump at the beginning of the year. However, it failed to clear the $0.28 resistance zone. Rather, it was rejected (red icon) and started a sharp decline. The decline led to a new low of $0.15 per year in May 2023. Now, the price is approaching the 2020 low of $0.14. Due to the sharpness of the descent, there are no signs of bullish reversal in place. The price has formed six consecutive bearish candlesticks with consecutive lower closes, a decisive sign of weakness. Also, the weekly RSI is below 50 and falling. This is also a sign of a bearish trend.
ALGO Weekly Chart / Source: TradingViewDespite this bearish outlook, if the price closes above $0.16 on the weekly timeframe, it could start an upside move towards the next resistance at $0.21.
EOS price drops to 2017 low
EOS price has been falling since August 2022. It formed a lower peak in January 2023 (red icon). It also created a descending resistance line in the process. Later, the price declined to the $0.85 horizontal support area. In the last 12 months, the price has seen this level for the third time.
A final breakout from this area seems like the most likely scenario, as the lines weaken each time they are touched. This possibility is supported by the RSI below 50, which has already broken from the descending and ascending support line. If EOS price declines, the next support will be at $0.45. The altcoin has not reached this level since late 2017.
EOS Weekly Chart / Source: TradingViewHowever, in case of a strong bounce and break from the descending resistance line, this bearish forecast will be invalid. In this case, an increase to $1.80 is possible.
This altcoin is the last of the bear cryptos
DOGE price has fallen since being rejected by the horizontal resistance area at $0.12 in October 2022 (red icon). The decline took the price back to an ascending support line that has been in place since June 2022. The line has been in place for such a long time. So a breakout from there can catalyze a sharp drop. Price revisits this line for the fourth time. The lines weaken each time they are touched. Therefore, an eventual breakout is the most likely view.
DOGE Weekly Chart / Source: TradingViewIf this happens, it is possible for DOGE to return to the 2022 low of $0.05. However, in case of a sharp jump, this decline hypothesis becomes invalid. Besides, it is likely to lead an increase towards the $0.12 resistance area.
58748
