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The short-term market has seen crazy periods of uncertainty, while the long-term market seems to be imagining an attempt to stabilise the price. Altcoins such as Cardano [ADA], Polygon [MATIC], and Tron [TRX] saw a drop in value, but the market was attempting to rebound at the time of publishing.
After a day of vicious attacks on Cardano’s valuation, it seemed to be on the mend. It was just four days ago that it reached an all-time high of $2.51, during which it briefly fell by nearly 60% to $0.9179. The price of ADA rose to $1.61 on the charts as the stock recovered.
Provided that buying pressure stayed steady at the press time stage, the alt’s price may continue to trend above $1.48 as the immediate support was marked there. The commodity had fallen from being overbought and was floating close to equilibrium, according to the Relative Strength Index.
This meant that the sale pressure tended to ease buyer saturation, and that now that the RSI was at equilibrium, the purchasing and selling forces were balanced. However, the market was losing steam, which may have a bearish effect.
MATIC reached an all-time high of $2.87 on May 18, but its value, like Cardano’s, has been declining. Following that, the alt’s valuation fell to $1.01 before rebounding as a degree of support was built here. The stock later returned to $1.91, with the trading level indicating that it was approaching overbought territory.
According to the Relative Strength Index, MATIC was overbought from the 13th to the 18th of May and fell just under when the price dropped. The sellers pushed the indicator’s value to 65, which was already dangerously close to the overbought zone. About the price’s recovery, it might not be able to break through the mentioned amount because the demand seems to be lacking traction.
It is worth remembering, though, that because the purchasing pressure is still strong, the money has stayed in the market.
Tron [TRX], on the other hand, was seeing bearish market influence. The cryptocurrency was traded above the $0.1152 support level before the sell-off pushed its value to $0.0055. TRX’s value rose to $0.0848 as the stock stabilised, but the general mood remained bearish.
This was emphasised by the Signal line crossing over the candlesticks, indicating that the price was trending lower. On the opposite, the Bollinger Bands were diverging, indicating that further pricing activity was entering the TRX market. However, because of the heavy market pressure, the price could be moved lower.
The Relative Strength Index had dropped back to the oversold zone and was now reading 35. The selling pressure stayed dominant, and with the MACD still passing under the Signal line, the bearishness in the market became more prominent.