Bitcoin and altcoins have been hit this week by the SEC’s regulatory moves. Therefore, it remains to be seen what will happen next week for LINK, MATIC, ETH, LTC and BTC. In this article, we will convey the comments of analysts who determined the critical levels for these altcoins. Here are the details…
Critical levels set for LINK, MATIC, ETH, LTC and BTC
Litecoin investors withdraw
According to analyst Aaryamann Shrivasta, Litecoin price has had a pretty rough start to the month. It was painted red on the charts after the one and a half month resistance level was overcome. The impact on investors was much more bearish than expected, as LTC holders decided to back off. Litecoin’s price, trading at $89, is hovering in the $90 region after observing an 8 percent drop over a one-week period. Similar to most other cryptocurrencies, the altcoin’s decline was driven by broader market developments, including recent regulatory pressures.
However, even before the situation develops further, LTC holders seem to be taking precautions. At the beginning of the month, on-chain transactions increased as the Litecoin price reached $95 and it was apparently about to turn the critical resistance at $96 to support. Total trading volume in profit increased and reached an all-time high with 49.6 million LTC worth $4.4 billion. Usually, such spikes are indicative of potential profits, but investors backed out before that happened.
LINK price faced correction
The Chainlink (LINK) market has been dominated by bullish momentum over the past 24 hours, with prices jumping to a 24-hour high of $6.03 before meeting resistance. However, failing to break this barrier caused LINK’s price to drop to $5.9 at press time, which is a 0.42% drop from the previous close. Due to this decline, LINK’s market cap fell 0.52% and its 24-hour trading volume fell by 41.30% to $3,073,022,662 and $93,602,292, respectively.
If the bears break the $5.94 support level, LINK’s next possible support level could be $5.50. If the bulls push the price higher, the $6.20 level is the next possible resistance point. On the LINK/USD 2-hours price chart, the stochastic RSI at 42.46, pointing to the downside, indicates that the negative trend may continue in the near term. If the Stochastic RSI dips below 20, it could indicate oversold conditions and a possible buying opportunity. The fact that the rate of change (ROC) moves south and into the negative zone and takes a value of -1.05 supports the pessimistic mood. However, if buying pressure builds and the rate of change (ROC) turns into positive territory, it could signal a bullish shift in market sentiment.
The Relative Strength Index (RSI) is 43.23 and tends to rise as LINK tries to break through the signal line on the price chart, indicating that the negative momentum is waning. This move could cause a shift in market sentiment as buyers gain confidence in LINK’s prospects. The negative impact on LINK is mitigated by a Money Flow Index rating of 69.21. This is a good indicator for investors hoping for a market return. However, given the south move, this reversal may be slow as LINK still needs to break through several critical resistance levels.
Bitcoin lost critical support level
Despite the 24-hour drop in its price, BTC managed to outperform its biggest rival Ethereum (ETH) by 0.96% during this time. The daily trading volume also increased by 24.27%. As a result, BTC’s 24-hour trading volume stood at $14,600,947,679. From a technical standpoint, BTC’s price dropped below the key $26,200 support level in the past 24 hours and continued to trade below the mark at the time of writing. Technical indicators showed that the crypto price will do the same with the next key support level of $25,270 in the next 24-48 hours.
The 9-day EMA line is positioned below the 20-day EMA at press time. This was an indication that the price of BTC is in a short-term bearish cycle and will continue to decline in the coming days. If the price of BTC breaks below the aforementioned $25,270 support in the next 24 hours, it will be at risk of falling to $23,800 the next week. However, the bulls may consider the possibility of a drop below $25,270 as a buying opportunity, which could push the price of BTC back above the key level.
YouTuber Scott Melker, popularly known as the “Wolf of All Streets,” highlighted recent events and their impact on the market in one of his latest videos. Over the past 48 to 72 hours, major players in the industry such as Binance and Coinbase have faced legal challenges that have created anxiety and uncertainty among traders and investors. Melker provided a breakdown of these developments and their potential impact. Scott noted that despite the lawsuit, there has been a significant amount of positive movement with many assets showing green.
DeFi purges rise for Ethereum
In the past 24 hours, approximately 385 million USD of liquidity has been seen in perpetual contracts in crypto markets. That’s more than double the worst one-day liquidation of $140 million in May. The recent increase in liquidations is a direct reflection of volatile market conditions. The DeFi ecosystem was particularly hit by the liquidation wave. Considering Ethereum’s central position in the DeFi ecosystem, recent liquidations on decentralized exchanges are largely due to the drop in ETH value.
On Saturday morning, ETH price dropped below $1,750 for the first time since March. Accordingly, the positions of many traders who bet on the rising price were forcibly closed. According to DeFiLlama data, $83.5 million of stETH collateral will face liquidation when ETH drops to $1,753. When ETH drops to $1,681, more than $26 million in ETH will be at risk.
What’s next for Polygon?
The MATIC price has dropped in the past few days, joining the rest of the crypto market, but has gone a little further after adding more to its losses over the past 24 hours. Investors are now being tested for their ability to avoid panic selling as the rewards are far away. MATIC’s price, trading at $0.7179, has lost close to 20% of its value over the past few days, bringing the altcoin to a key support level. The level of $ 0.7043, which has not been broken for about nine months, was last tested in September 2022.
Interestingly, in addition to the drop, the current bearish trend in the market is enough to trigger sell-off, especially in the hands of traders who lost 20% in one week. But the MATIC owners have proven and are proving to be quite durable. These investors refrain from selling their MATICs and have held their supply for over a year. As a matter of fact, investors who bought in the last month are also of the HODLing opinion. This is also seen in the distribution of the entire MATIC supply in circulation. Because approximately 54.5% of the supply is in the hands of HODLers or long-term owners.
The remaining 45.5% is concentrated mostly in mid-term owners (Cruisers), who control 43% of MATIC, leaving just over 2% to short-term owners who are more prone to selling. However, for these traders to be rewarded, MATIC needs to spotlight a rally of at least 30% and turn $0.9413 into a support base. The reason behind this is the 4.72 billion MATIC value over the $3.3 billion purchased at this price point.
