cryptocoin.com As we have reported, there is a downtrend in the cryptocurrency market, with the declines of Bitcoin (BTC) and Ethereum (ETH). Cryptocurrency experts, on the other hand, are warning of a sharp fall for these 3 altcoin projects on the giant cryptocurrency exchange! So what’s next for these altcoin projects? Experts explained…
Analyst: “The popular altcoin GRT may experience a quick crash if it cannot hold at these levels!”
According to the popular analyst, The Graph (GRT) formed a descending pattern after being rejected by a strong resistance zone. After breaking below $0.52 in November 2022, The Graph (GRT) started a strong recovery which helped the price move above the $0.1 resistance zone and approach the strong $0.17 resistance. Although the price initially climbed above the $0.17 zone, it turned out to be a false breakout. The GRT price was rejected by this region and formed a long upper wick, which is a sign of selling pressure.
Since then, the bulls have tried to break above the $0.17 zone several times but have failed. Last week’s rejection created an engulfing bearish pattern. This is a bearish pattern that signals that the bears are taking control of the market. In addition, the rejection coupled with the bearish trend in the weekly RSI indicator further strengthens its importance. If these levels materialize, GRT price could visit the $0.1 support zone once again, marking a drop of more than 20 percent from the current price.
However, the GRT price has been trading in the $0.13-$0.175 range since March 15. The price tested both the resistance and support lines of the range several times. It is currently approaching the support of the range at $0.13 once again. This is a very important price level because a rebound or deterioration below it could set the future trend. If the price recovers from this level, it could rally to the middle line of the range at $0.15. A break below this level may cause the price to drop to the long-term support zone of $0.1. This means a big drop for GRT.
Filecoin (FIL) investors are on sale! What will the price be?
The rapid decline in Filecoin price below $6 provided a strong foothold for the bears. On the one-day chart, however, Filecoin is consolidating with a loss of 1.1 percent. Over the past week, the popular altcoin FIL has lost nearly 17 percent. The technical outlook for Filecoin points to bearish pressure with a drop in demand and accumulation. If the sellers press further, it will add to the bearish pressure. Bitcoin’s struggle to stay above $30,000 has also affected other altcoins, keeping them below immediate resistance levels. Demand needs to pick up in the coming trading sessions for FIL to rise above $5.50. The recent drop in Filecoin’s market value also points to increased selling pressure. Broader market strength remains crucial for the altcoin’s price action in subsequent trading sessions.
Instantly, the FIL price is at $5.26. The popular altcoin, which went into free fall with Filecoin falling below the $ 6 level, is facing a resistance at $ 5.60. If this resistance is overcome, the next level is located around $ 6.30. Conversely, on the downside, there is a support level at $4.90. If it manages to break below this level, FIL will drop back to $3.80.
However, in the last few trading sessions, the purchasing power for the FIL has decreased significantly due to the drop in demand. The Relative Strength Index showed that purchasing power was declining and the sales force took control as the index dropped below 40. Also, the FIL price dropped below the 20-Simple Moving Average line, indicating that sellers are taking control and driving the price momentum in the market. However, if Filecoin breaks above the $5.60 mark, the coin could bounce back above the 20-SMA line and bring the bulls back.
At the time of this writing, Filecoin is giving sell signals in line with other technical indicators. The Moving Average Convergence Divergence is showing red histograms showing sell signals for price momentum and trend reversals.
Experts explained: Ethereum (ETH) is losing the resistance level!
While citing critical levels for the leading altcoin Ethereum (ETHI), a crypto analyst who is closely followed by the cryptocurrency market, says that large organizations are using bullish ETH investors as liquidity to exit the markets, noting that investors are currently trapped:
We were talking about how Ethereum was going to break above this range and we were saying that this range is the perfect range to enter a downtrend again, especially if we see this weakness we will start to create a plan for potential short positions. Look what we’ve got, an 11% or 12% drop in a single week completely reversed these gains and it looks like we’re ready to continue the decline in the near term. So why is this the case here?
This was the highest range we’ve been in since May 2022. This is what gets many investors into the trap because a lot of people think that when you break the potential resistance, or the resistance that has kept the price down for about a year, this is the time when everyone feels the urge to go long.
Merten says whales and institutions are likely taking advantage of ETH’s current price structure and the extreme bullishness in the markets. He says that big investors predict prices will drop significantly as they profit from the last rally.
Anyone who hasn’t been able to catch a larger wave is probably starting at this point, and it’s the best time for large-scale investors who have been using that wave for a long time.
This is the time period they dispose of. They use these buyers as exit liquidity to sell positions they bought at a much higher valuation at a much greater discount. That’s the name of the game, folks, and if you’re trading with these emotions, you’re going to be used by these bigger investors, smarter people who will take advantage of those emotions.
Merten also looks at the big picture macro conditions and warns that the US Federal Reserve will continue to tighten interest rates to fight inflation:
Dissenters in this environment cannot ignore the fact that there is still a lot of inflation in the economy in the macro environment right now and the Federal Reserve will have to continue tightening even more than people expect. We’ve tinkered with this narrative for the past year and a half, many others have been on the rise, and it has proven time and again that inflation is sticky, it takes time to fix.
ETH is currently valued at $1,837 and has dropped 13 percent in the past week.
