The crypto market began April with a cheerful mood, but since the middle of the month, the mood of investors has changed from plus to minus. BeInCrypto reviewed 4 altcoins that could suffer further losses in May.
April turned out to be a very turbulent month for the crypto market and passed under the sign of increased volatility. By the end of the month, the market is dominated by a bearish mood. The editors of BeInCrypto reviewed 4 altcoins that have been hit hard and at the same time give warning signals about a likely continuation of the fall.
Polygon (MATIC) has lost key support
MATIC is the native token of the Polygon network, a popular second layer scaling solution for the Ethereum blockchain. It helps reduce the cost and speed up transactions using sidechains. These are separate blockchains that operate independently of Ethereum but are connected to the main network. Polygon also helps to transfer decentralized applications (dApps) to a system of connected blockchains.
According to the results of the technical analysis, on April 19, the MATIC rate broke through the ascending support line, which has been present on the chart since the beginning of the year. This bearish breakout could be an indication of the end of the bull run and the start of a new phase of decline.
At the same time, the price lost an important support in the area of $1.05, represented by the Fibo level and the horizontal level. Fibonacci levels are traditionally considered the most likely springboards for stopping and reversing the price after a significant advance in any one direction. As expected, at these levels, the market can win back part of the distance traveled and only after that resume movement in the original direction.
After the perfect breakout, MATIC tested the $1.05 area already as resistance (red icon). All this promises the altcoin rate to continue to decline before it finds the bottom.
Below the current levels on the chart, there is a lack of significant supports. This promises the price a drawdown to the low of the year by $0.74.
Meanwhile, a close above $1.05 would neutralize this bearish scenario and could trigger a move towards the former rising support line at $1.20. However, the current bearish momentum reminds that the most likely forecast at the moment is further decline.
PancakeSwap (CAKE) has updated the annual minimum
The CAKE altcoin rate broke through the ascending support line on April 19 and has been declining since then. The price fell quickly, without attempts to rebound.
The token sank to a new low of the year at $2.57 and can now break through the horizontal resistance area of $2.55. If successful, CAKE will absorb the 2022 lows.
Due to the lack of significant support below current price levels, this could trigger a sharp drop to $0.70.
In the meantime, a bounce in price could lead to a rise towards the $3.20 area, which should offer resistance to the bulls.
Read also: What is PancakeSwap: an overview of the exchange and its tools
Optimism (OP) aims for a breakout from a bearish pattern
The OP token has been declining along a descending resistance line since the beginning of February. The active horizontal support area of $2.0 is also highlighted on the chart.
Together, they form a descending triangle, which is considered a bearish pattern. This means that the most likely scenario for the price to break out of it is a breakout to the south.
If this happens, the OP price could drop to the next nearest support at $1.30. It is represented by a horizontal area and an ascending support line.
On the other hand, if the market manages to bounce off the $2.0 area, it could continue to rise towards the descending resistance line at $2.25.
Read also: What is Optimism: an overview of the Ethereum second layer solution
Graph (GRT) declines after correction
The Graph (GRT) is a protocol cryptocurrency of the same name for querying and indexing data from public blockchains. The GRT token powers this decentralized indexing protocol.
The GRT rate launched a growth phase on March 10, but failed to develop it, and on April 21 the trend reversed. As a result of the decline, the price broke through the ascending support line, suggesting that the growth phase is over.
Meanwhile, wave analysis indicates that the preceding growth is very similar to the corrective structure of ABC. Since the structure was up, this means that the trend itself is bearish.
If the decline continues, the altcoin rate may sink to the next support in the $0.095 area. A price recovery above the ascending support line will cancel this bearish scenario and may trigger an increase towards $0.22.
Read also: How much will BTC cost by the end of 2023: Bitcoin forecast
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2023-04-29 17:33:00
#Altcoins #Renew #Lows
