Kategorie: Crypto Analysis

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.

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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.

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Before the crypto crash this week, Cardano had shown outstanding upward momentum. The coin at one time even rallied by nearly 50% in less than a week. But as weakness sips through the market, all these incredible gains have now reversed. Despite this, ADA has managed to establish a strong trading range. Here are some highlights:

• ADA has traded between $0.47 and $0.55 over the last few days

• This range will likely hold as the broader crypto market slightly recovers

• Cardano however faces very limited upside to overcome the $0.55 barrier.

Data Source: TradingView 

Where will ADA go from here?

The trading range established by ADA over the past few days represents short-term support and resistance. It is likely that the coin will trade within this range for days before it finds direction. 

However, we do not see a lot of downsides. In fact, if ADA was to lose the $0.47 support, it could still find a lot of resilience at $0.435. This is actually a longer-term support zone for the coin. Also, if there is a period of price consolidation above $0.55, we may see a short-term rally for ADA. 

But it doesn’t seem like the coin has so much room to run. In fact, the best-case scenario for bulls would be to try and reclaim the highs of $0.77. Here, ADA will face major sell-off pressure and will likely retreat even before it attempts to test $1.

When will ADA return above $1?

It seems like yesterday when we were all looking at ADA above $1. The coin was projected to hit at least $5 by the end of the year. However, this is now highly unlikely since ADA would need to grow more than 10x to hit that estimate.

But a return above $1 is not out of the cards. Sentiment will however need to improve drastically over the month ahead for this to happen.

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The cryptocurrency market could end the week in the negative zone as the leading cryptocurrencies record huge losses.

The cryptocurrency market has been down by less than 1% over the past 24 hours. The market has lost hundreds of billions of dollars since the start of the week and looks prime to end the week in a bearish trend.

The total market cap currently stands at $900 billion, down by more than 65% from the all-time high of $3 trillion.

Bitcoin is down by less than 1% over the past 24 hours and currently trades above $20k per coin. The leading cryptocurrency reached an all-time high of $69k seven months ago but is now struggling to defend its price above $20k.

Ether remains the second-largest cryptocurrency by market cap. ETH is down by nearly 2% in the last 24 hours and currently trades around $1,100 per coin.

There is no catalyst behind Ether’s ongoing poor performance except the bearish trend affecting the broader cryptocurrency market. 

If the trend continues, ETH could struggle to defend its price above the $1,000 psychological level in the coming days and weeks.

Key levels to watch

The ETH/USD 4-hour chart is bearish as Ethereum has been underperforming over the past few days. The technical indicators show that the bears are fully in control at the moment.

The MACD line is below the neutral zone, indicating bearish momentum. The 14-day RSI of 35 shows that Ether could soon enter the oversold region if the current market condition persists.

If the bears remain in control, Ether could decline below the first major resistance level at $1,088 before the end of the day. In the event of further losses, ETH could slip below the $1,000 psychological level for the first time this year. 

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Crypto has come into focus over the last few days after a major crash. Most coins have been on free fall, LINK included. But contrary to the doom and gloom out there, a complete crypto collapse is highly unlikely. LINK in particular has a real chance of stopping the downtrend, but it will need to hold a very important support level. Here are some facts to keep in mind:

• LINK dropped nearly 40% in two days this week

• The coin has recovered a bit from these losses but still remains weak

• If LINK can maintain the price above $6.10, it can avert a major downside

Data Source: TradingView 

Will the support hold?

The big question for most bulls is whether there is enough confidence in the market to avert another sell-off. After the Fed made a commitment to fight inflation with an aggressive interest rate hike, risk assets saw a major boost. But there are fears this short-term rally is not going to last.

So, for LINK to maintain the $6.10 support, it will need to at least avoid a 10% decline over the coming few days. While this is possible, based on overall sentiment in the market, there is still a risk that the support could be breached.

If this happens, the next strong support will be around $4.5. This would represent a 40% drop from the current price. But if $6.10 holds and the price action consolidates around it, LINK could surge above $8 by the end of trading this week.

Major Ecosystem updates for LINK

Although the downtrend in recent weeks has been quite disappointing, LINK has been doing very well in building up its ecosystem. New plans on staking have already been rolled out, and the project has signed major partnerships. 

From a fundamental point of view, things are looking good for LINK. The only thing needed now is for sentiment to turn around in the broader market.

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