Published June 21, 2022
The ongoing correction phase in the crypto market started in November 2021, after several major cryptocurrencies witnessed All-Time Highs. However, this downfall has tumbled even the strong projects by 70-80%, bringing a heavy discount for interested traders. Today, we’ll analyze some of these altcoins whose post-correction rally can offer exceptional returns.
On 16th November 2021, the second-largest cryptocurrency Ethereum(ETH), marked a new All-Time-High of $4891. However, the ongoing retracement breached some crucial support levels and plunged to a current low of $896.11, registering an 81.6% loss.
Anyhow, the coin buyers managed a weekly candle closing above $1000 and sustained this psychological level. Moreover, the lower price rejection candles at the aligned support $1000 and 0.786 Fibonacci retracement level, projecting a high demand zone.
This support level holds the potential to form a bottom and could bolster the ETH price to start rallying again. The $2000 breakout should give an additional confirmation for recovery.
Furthermore, the potential rally could surge to the ATH mark of $4891 or under a strong bullish scenario, and the trend-based Fib-extension suggests $5665.
Relative Strength Index- the weekly-RSI slope has nosedived into the oversold region, indicating the sellers have overextended the downtrend. As a result, the discounted price could attract more buyers and encourage a bullish reversal from $1000.
The nine-month downtrend depreciated the FTT/USDT pair by 75%, reaching a low of $21.5. This support level previously stalled May 2021 downfall and bolstered the July-August bull rally.
Last week, altcoin barely touched this support level and reverted by offering a long-tail rejection. Moreover, a 0.786 Fibonacci retracement level located at the same position increase weightage of this demand zone.
A potential reversal from this support should breach the significant supply region for additional confirmation. If the buyers regain trend control, the altcoin may rise to ATH of $85 and, with sufficient bullish momentum, $102.
Vortex indicator- a significant spread between the bearishly aligned VI+ and VI- slope indicates sellers maintain an upper hand over buyers. This indicates the altcoin may witness a consolidation phase before rallying higher to replenish the bullish momentum.
The MANA/USDT technical chart showcased a steady downfall since the November 2021 ATH of $5.9. This downfall slumped the meta coin by 89.75% and hit the $0.731 mark, which is the same support level that bolstered the October 2021 bull rally.
While the largest cryptocurrency-Bitcoin shows sustainability above the $20000, the MANA chart reflects the formation of morning star candle patterns near the $0.8 support zone.
The potential recovery must reclaim the $1.7 mark to gain better confirmation for a bull rally. If the buying pressure persists, the coin price could revisit the ATH($5.9), indicating a 588% growth potential.
MACD indicator- the faded red bars in the histogram chart show weakening of bearish momentum. Moreover, the MACD slope gradually nearing the signal line for a bullish crossover would offer an extra edge for long traders.
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