Kategorie: Crypto Analysis

June has been a devastating month for crypto investors. But despite this, we are seeing some recovery as major coins build modest upward momentum. AVAX is not any different, and the coin has now managed to reclaim an important support zone after crashing in June. So, where will it go next? Is the rally short-lived or permanent? Here are some highlights:

• AVAX had crashed nearly 65% in June alone.

• However, the coin has rallied in the past two days with a 15% gain in 24 hours.

• More importantly, AVAX has reclaimed the $14 support.

Data Source: TradingView 

Where will Avalanche go from here?

Well, there are many scenarios at play here. First, the rally we have seen by AVAX over the past two days corresponds to a broader recovery in the market. This could suggest that perhaps we were seeing a short-term relief after massive sell-offs last week. If that’s the case, then AVAX could lose upward momentum very fast.

The good news though is that the coin is now trading above the $14 mark. For the most part in 2022, this support has held strong even in the face of massive bear pressure. So, even if the coin was to pull back from its current 2-day rally, the bulls will have a better chance of defending the $14 mark than they did a week ago.

However, failure to keep $14 could mark the beginning of a major decline for AVAX. In fact, after $14, the only other real support is at $10.70.

Why AVAX still poses major risks?

Despite rising above the $14 mark, we still see major risks with AVAX. First, the coin has in the past few weeks struggled to keep the momentum going above $20. 

As such, we expect it to begin losing momentum as it strives toward $20. This could lead to a sharp pullback that eventually puts the $14 support under real threat.

The post Avalanche reclaims $14 support after June crash appeared first on CoinJournal.

The cryptocurrency market performed excellently over the past 24 hours as major coins and tokens recovered from their recent losses. 

The cryptocurrency market recorded huge losses last week, with billions of dollars wiped out from the major coins and tokens. The total market cap dropped below the $1 trillion mark for the first time this year a week ago.

Despite the recent bearish performance, the crypto market performed well over the weekend. The cryptocurrency market is up by more than 8% in the last 24 hours, with the total market cap now around $900 billion.

Bitcoin, the world’s leading cryptocurrency, is trading above $20k again after dropping towards the $17k support level a few days ago. Meanwhile, Ether maintains its price above $1,100 after adding more than 9% to its value in the last 24 hours.

BNT, the native token of the Bancor ecosystem, is underperforming the broader market at the moment. BNT is up by 2% in the last 24 hours, which is below the total market average at the moment. 

The poor performance can be attributed to the Bancor team announcing earlier on Monday that it has temporarily paused Impermanent Loss (IL) Protection due to the current market conditions. As a result, withdrawals performed during this unstable period will not be eligible for IL protection, the team added. 

Key levels to watch 

The BNT/USD 4-hour chart is still bearish despite BNT currently trading in the green zone. 

The MACD line is below the neutral zone, indicating a bearish trend. The 14-day RSI of 41 shows that BNT is no longer in the oversold region. 

At press time, BNT is trading at $0.530. If the positive performance continues, BNT could surge past the $0.61 resistance level over the coming hours. However, it would need the support of the broader market to rally past the $0.82 resistance level. 

The post BNT is up by 2% today despite Bancor pausing IL protection appeared first on CoinJournal.

For the past two weeks, Bitcoin Cash has followed in the steps of major coins in decline. The coin now looks significantly bearish even though it has managed to recover a few of this week’s losses. However, downward pressure will likely continue over the weeks ahead as sentiment in the broader market struggles to find momentum. Below are the major BCH highlights:

• Bitcoin Cash has stopped the downward decline with a modest gain today.

• But there is no real chance of a sustained bullish run

• BCH will likely trend lower and eventually lose the $100 support 

Data Source: TradingView 

Why holding a $100 is key?

BCH has faced a lot of pressure in 2022. But the coin has still managed to stay above $100 all year round. This is an important psychological barrier. It shows the resilience of BCH in the face of market-wide pressures. But for the first time in 2022, there is a real risk that BCH could finally fail to keep the $100 mark.

In fact, at the time of writing, the coin was trading at around $120. This was after a modest 24-hour gain of around 3%. BCH is dangerously close to the $100. It only needs a 20% decline to fall to double digits.

For a coin that has already dropped 22% over the last 7 days, another 20% decline is more probable than you think. Nonetheless, once $100 is breached, expect BCH to fall further towards $80 before it finds support.

Why is BCH falling?

The downtrend that BCH has seen is not isolated to the coin alone. In fact, we have not seen any major changes in the coin’s fundamentals here. The fall is largely caused by economic and monetary factors in the global economy.

Sadly, these tough economic conditions will not ease anytime soon. As such, BCH investors must be ready for a consistent bear season.

The post Bitcoin Cash to trend below $100 as weakness in crypto bites appeared first on CoinJournal.

Over the past 24 hours, XLM has seen some slight consolidation. After 4 straight days of loss, the coin has managed to report a modest 2% surge. But this is still a passing cloud. In fact, the bearish outlook on XLM is stronger especially now we have seen a drop in trade volume. Here are some pointers:

• XLM has seen a 28% decline over the past week

• The trading volume over the same period has also declined sharply

• The coin will likely continue downward for a few weeks despite the minor recovery.

Data Source: TradingView 

Stellar: A bear on the loose?

It’s understandable that XLM is bearish and will remain so for at least another month. The market has not left any room for gains as most major coins continue to sell off. But the trend for XLM is quite alarming. 

The coin actually saw some decent runs in May. In fact, in the run-up to June, we saw a strong relief rally for XLM that took it above several key support zones. But over the past two weeks, slowed momentum has pulled the price action down. Besides, momentum indicators, including the RSI and the Money Flow Index show a bearish reading. 

But more importantly, a sharp decline in trade volume has been observed. This suggests that many investors are taking a break from XLM as they wait for the market to turn. With all these factors, XLM will continue to trend lower and may even hit a new 2022 low in the coming days.

Should you buy the XLM dip?

Well, for now, it’s best to wait. The market is yet to bottom, and even if we see a relief rally, it will be short-lived.

XLM still has another 40 – 50% downside to go. Wait for it to bottom before you jump in for the dip. This may take a few weeks to happen or even sooner.

The post Stellar (XLM) bearish outlook remains as trading volume drops appeared first on CoinJournal.

Before the crypto market crashed early in the week, Litecoin was perhaps one coin that had shown a lot of bullish promise. At the time, LTC had finished a 4-week consolidation phase, and bulls had managed to hold the $51 support. It was only a matter of time before the coin rallied. But this week things have taken a turn for the worse. Here are some of the facts:

• LTC lost the $51 support as the pressure in the market took hold

• The coin has however managed to keep the price action above the next $41 support

• If this continues, LTC could genuinely avert a major decline in the coming weeks.

Data Source: TradingView 

Litecoin price prediction – Is a trend reversal coming

Right now, overall sentiment and trends in the crypto market point toward major losses. The market is in full bear mode, and trade volume has reduced significantly. It’s therefore hard to see any sustained bullish environment. However, there are some positives from an LTC point of view. 

First, despite the massive sell-off reported in crypto this week, LTC losses were far lower compared to other major coins. Also, the token has managed to stave off the bears at $41. This shows a lot of resilience.

And besides, LTC has rallied over the last 24 hours with a 10% gain. These conditions suggest that LTC will be able to stay above the $41 support for now. While this may not trigger a decisive bull run in the short term, it could limit further downside.

How to trade LTC for now

The downside risk below $41 is huge. If LTC were to lose this support, then we could see a 40 – 50 % drop. 

So, the key is to give the coin a few days. If bulls are still able to defend $41, then you could buy for the short term.

The post Litecoin aims to hold $40 support and stop further decline appeared first on CoinJournal.