Kategorie: Crypto Analysis

Daily headlines and news about crypto analysis.

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Bitcoin Cash to trend below $100 as weakness in crypto bites

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.

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Stellar (XLM) bearish outlook remains as trading volume drops

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.

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Litecoin aims to hold $40 support and stop further decline

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.

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Dogecoin faces a 60% downswing as meme coins trend lower

Dogecoin has accelerated its slide significantly over the past week. The coin is slowly trying to find some momentum, but gains over the last 24 hours have been modest at best. However, DOGE faces a major downside from a longer point of view. The coin could potentially slide by 60% over the coming weeks. Here are some of the things you need to know:

  • DOGE appears to be accelerating downwards to the $0.048 support.

  • A breakdown at this price will trigger a downside towards $0.041.

  • This will represent over 60% in losses from the current price.

Data Source: TradingView 

How DOGE can avoid this sell-off

There are two ways DOGE can avert a sharp decline in the near term. First of all, the coin will need to find buying momentum and push the price well above $0.1. If this happens, we could see a more sustained uptrend that limits the downside by a huge margin. But based on trends in the market right now, we do not think the coin will rise above $0.1. 

Secondly, Dogecoin must hold the $0.048 support. This is relatively doable since the coin is already above this threshold by well over 20%. As long as broader weakness in the market eases, we are likely to see a stronger consolidation above this price. 

But there is still a risk that these two scenarios will not play out. After all, the market has already turned bearish. As such, it is likely that DOGE will fail to keep the $0.048 support and consequently slide 60% from its price.

When will DOGE recover?

A full recovery for Dogecoin will need months. The coin is already way lower from its ATH, and it doesn’t seem like there is enough demand for meme coins to push it up.

But a slight recovery to $0.1 is not far off. For now, the short-term outlook for dogecoin is bearish.

The post Dogecoin faces a 60% downswing as meme coins trend lower appeared first on CoinJournal.

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Avalanche could drop below $10 – Here is why

Avalanche, like many major coins, has had some reprieve from the crash we saw at the start of the week. Although the coin is down 3% over the last 24 hours, it has managed to stabilize. However, the altcoin is not out of the woods yet; in fact, another major sell-off could be on the way. Here is what you need to know:

  • Low trade volumes in crypto could precipitate a liquidity challenge for AVAX

  • The prospects of a global recession and tight monetary policy are major risk factors.

  • AVAX could drop nearly 50% and bottom below $10 in the coming weeks.

Data Source: TradingView 

Avalanche price analysis and prediction

At the moment, Avalanche appears to be in a consolidation phase. However, this does not mean there is likely bullish momentum. In fact, this consolidation is basically a small reprieve from the massive sell-off reported earlier in the week. We expect Avalanche to resume the downtrend owing to weakened demand in crypto and wary investors. 

Also, as trade volume in the market slows, altcoins will likely face liquidity challenges. This may contribute to a major downfall in the near term. At the moment, AVAX is trading at around $16. The coin still has strong support at the $12 mark. 

However, we don’t think bulls have what it takes to hold it. Instead, AVAX will slide down past $12 and settle at around $9. This will represent a 50% drop from the current price. Nonetheless, this thesis will become invalidated if AVAX reclaims $20.

Why is AVAX falling?

Well, it is a combination of many things. For instance, the overall sentiment in crypto has slowed. As such, coins like AVAX are facing major headwinds. 

Also, we have not seen any major rally for AVAX this year. It turns out that 2022 is a year of corrections. As such, the coin could drop below $10 for the first time in 12 months.

The post Avalanche could drop below $10 – Here is why appeared first on CoinJournal.