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Since Bitcoin retraced by 7% and plummeted back to $36,000, the larger cryptocurrency market has seen a wave of selling pressure. Chainlink, Cosmos, and Aave all plummeted by more than 10% and were looking for support levels on their individual charts.
Chainlink’s rise was halted around the $32.5 resistance level as sellers re-entered the market. On the 4-hour chart, a few candlesticks broke below the $29-support and moved near to the next defensive barrier, which was around $24. Maintaining losses at $24 may result in some sideways movement, with a breakthrough possible if the larger market turns direction. Gains, however, would most certainly be confined to the maximum limit of $35.3.
After a few days of bullish trading, a bearish crossing in the MACD indicated that the bears had retaken control. Even the RSI dropped quickly and dipped below 40.
Cosmos’ surge failed to breach its 38.2 percent Fibonacci barrier ($17.6), and the bulls faced a loss of 23.6 percent Fibonacci level ($14.20) owing to selling pressure. In the event of a collapse, ATOM might return to the demand zone between $10.4 and $8.6, albeit there was some extra support above the $11 level.
In a tumultuous market, the Momentum Squeeze Indicator revealed that bulls were fast losing power. A closing below $13 may potentially present some short-term chances. Since May 30, the RSI has shown a consistent increase, but that pattern was reversing when the indicator slid into negative territory at the time of writing.
Aave was no exception to the overall market slump, with its value falling by 12% in the previous 24 hours. At the time of publication, the price was hovering at the $248.2-support level, and a collapse appeared imminent based on its technicals. The Awesome Oscillator signalling increasing negative momentum and predicted a drop below the half-line. The dotted markers of the Parabolic SAR shifted above the candlesticks at the $405-resistance, indicating that a downtrend was in effect.
Despite the losses, AAVE’s safety nett was located between $209-285, and a prolonged sell-off would most likely be resisted inside this range.