Crypto analyst Valdrin Tahiri assesses the crypto market outlook. Next, it considers 3 altcoin projects to short. According to the analyst, Cardano (ADA) and Coti (COTI) fell below critical horizontal levels. Algorand (ALGO), on the analyst’s list, fell to the lowest level of the new year. We have prepared Valdrin Tahiri’s analysis for our readers.
Crypto market cap is above 2017 highs!
cryptocoin.com As you follow, Total Crypto Market Cap (TotalCap) hit an all-time high of nearly $3 trillion in November 2021. However, it has been falling ever since. The rate of decline has accelerated and TotalCap currently reaches $801 billion.
Interestingly, the cryptocurrency market cap formed a wick below it. However, it remained within the high resistance of $760 billion in 2017. Also, the $760 billion horizontal support area is still intact. Additionally, the weekly RSI is in the process of forming a bullish divergence (green line). This comes after the Indicator dropped to an all-time low of 26 in June 2022.
Therefore, whether the Crypto Market ceiling price bounces or breaks below the $760 billion support area will determine whether the crypto market forecast is bullish or bearish. A bounce would also confirm a bullish divergence in the weekly RSI. This is why it is considered a vital sign of a bottom for crypto prices.
First altcoin project to be shorted: Cardano (ADA)
ADA, an altcoin showing bearish signs. The Cardano price has fallen since reaching an all-time high of $3.10 in August 2021. It fell to $0.29 in November 2021. The low was crucial as it previously prompted a breakout of the long-term $0.35 support area that has been in effect since January 2021.
Also, the breakdown led the RSI to invalidate the bullish trend line (green line). As a result, a drop towards $0.15 is the most likely scenario. This means a 50% reduction from the current price. The long-term Cardano wave count is also bearish. Conversely, in case of a weekly close above $0.35, this bearish trend thesis becomes invalid.
The other project on the list is Algorand (ALGO)
Another altcoin that has dropped significantly is ALGO. The Algorand price has been falling since November 2021, when it reached $2.99. The downside move resulted in a break below the $0.28 area, which is now confirmed as resistance (red icon).
Unlike Cardano, the weekly RSI for ALGO has formed a bullish divergence (green line). Also, the trend line is still intact. As a result, the potential for a bullish reversal is higher. However, a close above $0.28 is needed to confirm this. Otherwise, the next closest support area is $0.20.
Latest altcoin project Coti (COTI)
The COTI price has been falling ever since it hit an all-time high of $0.69 in October 2021. The bearish move advanced to $0.06 in November 2022. The altcoin followed a falling resistance line and was rejected (red icon) on November 9.
The downside move also resulted in a break from the $0.09 horizontal support area. This was a very important level as it acted as the all-time high resistance in July 2020. Similar to ADA, the weekly RSI bullish trend line (green line) has been invalidated. As a result, a drop to $0.035 is the most likely scenario. If there is a weekly close above $0.09, this bearish trend thesis is invalid.
