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While Bitcoin’s market dominance has been eroding week after week, Ethereum has taken advantage of it, raising its market share to a healthy 18.9 percent. Polygon (MATIC) was in the headlines this week for their planned project Aavegotchi, which blends NFTs, DeFi, and DAOs. Yearn.finance ( YFI ) was also in the limelight as its creator discussed ambitions to work on new vaults and verticals.
Ethereum [ ETH ]:-
ETH has remained inside its $2990 resistance and $2228 support levels this week. The currency dropped 13.2 percent in less than 12 hours and was trading at $2505 at the time of publication. As the red signal line crossed over the blue indicator line, MACD signalling a bearish crossing. However, at the time of writing, both lines were close to each other under the centerline.
The white dotted line remained above the candlesticks, indicating that the Parabolic SAR was also in a severe downturn. Furthermore, the Average Directional Index (ADX) was climbing at the time of publication, although it was still below the 25.0 level. If it crosses the threshold, the decline may acquire traction.
If the currency does not get any further negative signals, it may remain safe inside the previously described support and resistance levels.
MATIC, as forecast, continues on the road of a downturn. At the time of writing, the currency was approaching the $1.23 support level. Capital inflows have been high since June 4, according to Chaikin Money Flow, and the indicator has been climbing modestly since then. The green line has dropped somewhat towards the neutral line at the time of writing.
The Relative Strength Index (RSI) gained momentum as purchasing pressure pushed the indicator out of the oversold zone. However, at the time of publication, the indicator was still below the 50.0 neutral line. Simple Moving Averages (SMAs) remained a source of resistance. Both the 50 SMA (orange) and the 100 SMA (red) lines stayed above the candlesticks, indicating that the price movement was still extremely negative.
If the price falls further, $0.85 will operate as the coin’s next support level; otherwise, the sideways movement will hold it above $1.23.
Following the May 19 slump, YFI’s values fell 45.15 percent, bringing the coin to $39,560 as of press time. Despite being on the verge of breaking over the resistance level at the end of May, the currency has just approached the $35,400 support level. According to the Squeeze Momentum Indicator, YFI was engaged in a ‘squeeze release’ (the presence of white dots), and the visible red bars suggested that bearish pressure was present.
The presence of volatility was highlighted by Bollinger Bands, which stayed divergent on the 4-hour chart. The Average Directed Index (ADX) maintained at 39.8, much over the neutral level, indicating a very directional trend. According to recent events, every time ADX raised, the price plummeted. As a result, before making any decisions, it would be prudent to monitor YFI’s movements for the following several hours.
Even if it is not certain, there is a chance that the currency will go below the support level.