Crypto analyst Valdrin Tahiri takes a look at and analyzes the charts of the five altcoin projects that have dropped the most in the past seven days, more specifically from May 27 to June 3. We have prepared Valdrin Tahiri’s analysis for our readers.
Initial altcoin project Convex Finance (CVX)
CVX has been falling within a descending parallel channel since May 12. Such channels often contain corrective movements, that is, a breakout from it is expected.
First, the six-hour RSI created a bullish divergence, which was a sign that a breakout might occur. However, the trendline of the divergence was broken on June 1.
If price loses the middle of the channel, it could continue to decline towards its all-time low.
The next altcoin project Amp (AMP)
AMP has been falling into a descending parallel channel since May 13. The channel has caused multiple rejections, most recently on June 1st.
While the channel is often considered a corrective pattern meaning it’s leading to breakouts, there are no signs of an uptrend yet. Similar to
CVX, a drop below the middle of the channel could cause prices to drop.
Third place has OCD
OCD dropped to $10 on May 12, but jumped sharply and immediately after, it created a long low wick. The altcoin is currently trading at $11.40, and it appears to have formed a triple bottom pattern.
Additionally, the pattern is combined with a bullish divergence in the RSI (green line). However, the trendline of the divergence is at risk of breaking down. If so, lower prices can be expected. Conversely, if the line remains intact, a rise towards $15.10 could occur. Continuing with
Ethereum Classic (ETC)
ETC has been falling below a descending resistance line since March 9th. The altcoin dropped as low as $16.02 on May 12. Later, ETC broke out of the resistance line but failed to retrace the $25 resistance area. Also, the RSI was rejected by the 50 line.
The trend cannot be considered bullish until the price retraces the $25 area and the RSI rises above 50 (red icon).
The latest altcoin project, Celo (CELO)
CELO has been trading within a symmetrical triangle since May 12. While this is considered a neutral pattern, it comes after a bearish move. As a result, a dump of this would be the most likely scenario.
Currently the price is very close to the support line of the triangle. A drop below this is expected to accelerate the rate of decline.
To learn more about CELO, you can refer to this article of Kriptokoin.com .
