Many of the market’s altcoins, such as Stellar Lumens, Algorand, and Compound, traded in red at press time, as sellers maintained price control. Some level of saturation was observed in their markets as the altcoins above cooled off from their heights and headed south on the charts. In addition, the alts were projected to continue their trajectory on the charts before they stabilized.
Algorand started to fall on the charts at the time of publishing, after the bulls were unable to keep the price at the $1.72 mark. A descending channel formed on ALGO’s 4-hour graph as the crypto price traded around the midpoint of both trends.
Swing traders must wait for the candlesticks to hit either trend line before beginning a trade. The Amazing Oscillator showed that ALGO could shift to the bottom line over the next few sessions as the red bars increased in length below the half-line. The RSI has stabilised around the 40-mark. A strong sell-off might see a price break from the trend and shift towards a $0.94 support.
Like its counterparts ALGO and XLM, Compound also dropped on the charts at press time and continued its downtrend after record levels snapped during the week. In reality, ALGO entered the bearish market after the price had fallen below 50-SMA (red). Losses in the last seven days have amounted to more than 15%, amid a bustling wider sector.
The MACD line moved just below the signal line and favoured the vendors. An prolonged bearish outcome might see COMP break below the press time support and test the next defensive line at $367. Some hope emerged from the CMF as it jumped above the half-line and showed that capital was flowing towards the crypto-asset.
Stellar Lumens [XLM]
Since snapping a multi-year high of over $0.50, Stellar Lumens’ uptrend seemed to have cooled down. A descending triangle pattern formed on the 4-hour timeline as the price lowered over the last few sessions. Traders looking to take advantage of the trend must wait for confirmation of the southbound breakout before entering a short position.
After the breakout has occurred, the selling pressure could lower the price to its $0.34 support. The Amazing Oscillator moved below the half-line, and a further increase in the bearish momentum could see a downward break-up earlier than expected. The Stochastic RSI did not agree with the AO after a bullish crossover took place in the oversold zone. A favourable outcome will see XLM climb to its $0.54-resistance and invalidate the trend.
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