According to crypto analyst Filip L, Terra (LUNA) is on the wrong side of the technical level at the worst possible time. The analyst says that the domino effect caused the price of Algorand (ALGO) to fall. He also states that there is nothing the bulls can do about it. Analyst John Isige notes that the increase in Avalanch could be a dead cat bounce. We have compiled the technical analysis of analysts on three altcoin projects for our readers.
“Altcoin price at risk for at least 11 days”
LUNA price action is down more than 2% in just two trading days. Also, the current movement is still not finished. The gains tonight won’t be big enough to change direction. The failed move for LUNA at the $0.000306 support couldn’t have come at a worse time. There are by-elections on 8 November. cryptocoin.com As you follow, the Fed decision will come on November 2nd. LUNA price action is at the mercy of these two major events over the next two weeks.
LUNA does not support the $0.000306 handle, which started from the top on Sep. 02. While not 100% technically correct, the 38.2% Fibonacci level at $0.000314 triggered a rejection which has now caused a break below $0.000306. More downside moves are likely as the dollar strengthens in light of these two major events translated by LUNA’s price action of around $0.000290.
LUNA daily chartAlternatively, some economic data is still likely to trigger a reversal. This is also likely to cause a simple bounce. The possibility of a gold lock scenario is still on the table if the Fed signals that it will start to slow its hikes and start a soft landing rather than a recession. In such a scenario, investors would happily buy risk assets. In this case, it is possible for LUNA to rise to $0.00330.
“ALGO is an excellent example of spillover effects”
Algorand has nothing to do with the ECB directly. But if one of the major central banks moves or delivers a message that shakes the markets, he feels the repercussions. That’s what happened on Thursday when he ‘dropped the ball again’ to the ECB’s decision to raise interest rates and its commitment to the eurozone economy. The increase was expected and met expectations. But he remained silent about the fragmentation tool to control the rising interest rates that countries finance themselves. This is probably the elephant in the room.
The altcoin price action has seen investors frustrated by many issues and issues that went unaddressed. It penalized the euro and made the dollar more expensive and stronger. This in turn resulted in a weakening of the Algorand price action. The altcoin is down over 3% on Thursday. It also risks a pullback below $0.31 towards the closing bell.
ALGO daily chartThere is still one element that could work in favor of the Algorand price. That’s when major retailers and other services are ready to report their earnings in the US next week. After Thursday’s carnage with Meta and Amazon, some more positive news is likely to create headwinds supporting the crypto market. This likely means that ALGO will revisit Wednesday’s high of $0.35.
“Avalanche (AVAX) seeks revenge”
It is possible for AVAX to change its technical outlook to the upside if buyers experience an additional surge above the 200-day SMA (Simple Moving Average) (in purple), as shown in the eight-hour chart below.
However, this moving average is consolidating a key resistance at $18.00, which is likely to absorb the momentum behind AVAX. This area served as support, albeit briefly, in early September. Efforts to recapture the same level were fruitless. So there is the obvious possibility of another trend reversal.
AVAX eight hour chartAlso, the RSI (Relative Strength Index) will worsen the situation against the bulls if it enters the overbought territory. As a general rule, prices tend to improve in overbought conditions. When it comes to Avalanche, it would be prudent to watch out for the RSI to overbought and then exit. Re-entering neutral territory from overbought levels is a good time to stabilize gains while scanning for new shorts.
However, a break above the 200-day SMA is possible to reconfirm the uptrend. It is also likely to allow traders to enter more profitable long positions. For conservative traders, $22.00 is a potential profit taking target. However, extremely bullish traders have the option to move with the trend of AVAX to $30.00.
