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Market data is provided by the HitBTC exchange.
Does a price collapse indicate the decomposing fundamentals of an asset class? In many cases it does, but the market usually gets the fundamentals of a wrong emerging technology, both short and long term.
In May 1997, Amazon's share price was $ 18. Short-term expectations pushed it to $ 300 by December 1998 and from there they plummeted to $ 6 per share after the dotcom bubble burst. At that point, the market was seriously underestimating its potential and the unbelievers were claiming victory. However, the model has wronged everyone and Amazon has become the second company in history to reach a $ 1 trillion market capitalization.
Vinny Lingham, a Blockchain entrepreneur and industrial consultant, told Cointelegraph: "The climate can change once companies with solid use cases emerge from their development cycles, gain traction and demonstrate a valuable business value to make a difference. " Precisely because prices have crashed, it does not signal the end of a class of activity.
Since the action on short-term prices is dictated by the technicians, we take a look at the charts and predict the likely price action.
BTC / USD
During the decline of a waterfall, support levels are not respected, making it difficult to predict the fund. Pullbacks usually last only for about 1-3 days. Bitcoin attempted a recovery on November 21, which failed at $ 4,799.74.
Subsequently, the BTC / USD pair resumed its bearish trend, making a new low. Both moving averages are down and the RSI is deep in the oversold territory. This shows that the sellers are in charge.
The immediate downside support is $ 4,100, below which the fall can extend to $ 3,500- $ 3,000.
Any attempt to recover will have to face a rigid resistance to the downtrend line and $ 5,000. Even if we want to use the current drop to buy, we believe traders should wait for a level to hold before starting any long position.
XRP / USD
Ripple interrupted the uptrend line, which shows that negative sentiment also suffers. However, it remains well above its lows, which confirms its outperformance.
Moving averages started to decline and RSI fell below 40, which suggests that supply is exceeding demand.
The next downside support is $ 0.37185 and below $ 0.26913. The XRP / USD pair will indicate a consolidation if prices will rise rapidly above the uptrend line and moving averages will flatten. For now, it is better to stay on the edge.
ETH / USD
Ethereum is not finding buyers at higher levels. The pullback stopped at $ 141.91, which demonstrates a lack of buying support.
Currently, the bears are attempting to extend the decline to the next level of support at $ 110. Although all is possible in the markets, we believe that the oversold levels on CSR point to a probable withdrawal. We do not recommend trading on hope, therefore, we will have to wait for the creation of a new purchase configuration before suggesting any exchange in it.
On the upside, the ETH / USD pair will face a stiff obstacle at $ 167.32. The 20-day EMA is also close to this level, making it a critical resistance to bulls' crosses.
XLM / USD
Stellar is at a critical level. If bears support prices below $ 0.184, they will be negative and may lead to a new downward move. The lowest levels to keep under control are $ 0.1547188, ie the intra-day low of March 18 and $ 0.138565, which is the daily intraday minimum of December 22 last year.
Conversely, if the bulls successfully defend the $ 0.184 level, the XLM / USD pair may return to the 20-day EMA and above it to the downtrend line. We suggest that traders wait for the creation of a new purchase configuration before entering long positions.
EOS / USD
Although EOS broke critical support at $ 3.8723, it did not crash. This shows some purchase support at the lower levels. The oversold reading on the RSI also indicates an attempt to recover.
If the bulls fall to $ 3,887, a shift to the downtrend line and above $ 4,403 is likely. The 20-day EMA is also near this level, so $ 4,493 will serve as the main block.
If the EOS / USD pair does not exceed the $ 3,887 threshold, it may fall to $ 3. We do not find any rising bullish model, so we are not proposing a trade in it.
LTC / USD
The bulls tried to keep support for $ 32 in the last three days, but they were not able to push Litecoin higher.
However, oversold levels on CSR indicate a probable withdrawal. On the upside, the LTC / USD pair will face a stiff resistance to the 20-day EMA and above that in the $ 47.246- $ 49.466 zone.
On the other hand, if bears drop prices below the support zone of $ 32- $ 29.653, the fall may extend to the next support at $ 20.
ADA / USD
Cardano's withdrawal could not scale the $ 0.05 level and the price returned to the $ 0.041 support.
If the ADA / USD pair breaks and stays below $ 0.041, it may slip to the next lower target of $ 0.025954.
On the other hand, if the bulls are able to rebound from levels close to the current ones, the digital currency will try again to come out of $ 0.05. If successful, the pullback may extend to $ 0.060105, which is likely to represent greater resistance because this is the previous support and the 20-day EMA is also close to this level.
XMR / USD
Although the bulls attempted a retreat to Monero on November 21st and 22nd, they could not push prices above $ 72. As a result, the price has declined again.
In this leg down, if the XMR / USD drops to less than $ 60, the fall may extend to the next support at $ 46.
If the virtual currency finds buyers at current levels, the bulls will try again to exit the $ 72 level. If this level is exceeded, the pullback can continue with the next environmental resistance of $ 81.
TRX / USD
TRON could not exceed the previous support resistance of $ 0.01587681 in the last two days. However, a small positive is that the bulls held prices above the November 20 day counterweight of $ 0.0122194.
We anticipate the bulls to make another attempt to rise above $ 0.01587681 and reach the next resistance of $ 0.0183.
However, contrary to our expectations, if the TRX / USD pair falls below $ 0.0122194, the fall may extend to the next lower level of $ 0.00844479.
DASH / USD
Dash continues to trade near the support of the downtrend channel. This shows that the sellers have the upper hand.
Any interruption of the channel will be a negative development that can push the DASH / USD pair to the support after $ 75.
If the channel support is valid, the bulls will attempt another withdrawal to resize the $ 120 levels and reach the next environmental resistance of $ 129.58. We believe traders should wait for a turnaround before starting any long position.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.