Impending Crisis: These Lesser-Known Cryptocurrencies Face Imminent Plunge
As Bitcoin tumbles towards the $60,000 support level, the cryptocurrency market witnessed a significant downturn overnight altcoins. Bitcoin’s 3.62% price drop intensified selling pressure across altcoins.
While Bitcoin struggles to hold onto its support level, the fate of altcoins hangs in the balance, poised for a potential plunge in the coming week if market conditions remain stagnant. Furthermore, the retreat of the Fear and Greed index to the Neutral zone, marking at 56, indicates a shift away from previous greedy sentiment.
Here’s a detailed look at the potential altcoins on the verge of a downturn as Bitcoin grapples with the $60,000 milestone:
SUI Faces 25% Downside Risk
SUI is experiencing a steep decline on its daily chart, witnessing a substantial 30% decrease in just 20 days. This has led to a bearish reversal in both the 50 and 200-day Exponential Moving Averages (EMA), suggesting an imminent death cross. Moreover, the possibility of a double-bottom reversal diminishes as SUI’s price falls below the 61.80% Fibonacci level and the 200-day EMA, putting the $1 psychological threshold at risk and indicating a potential drop to the 78.60% Fibonacci level at $0.73.
Consequently, the upcoming week could spell trouble for SUI, with a looming crash if Bitcoin remains stagnant or experiences a downturn.
Bearish Trends Predict 40% Decline for ORDI
ORDI’s failure to surpass the $100 mark earlier in 2024 resulted in a significant downturn in April, causing the price to plummet. The downtrend has breached critical levels, including the 200-day EMA, the psychological barrier of $50, and the 50% Fibonacci retracement level. With the threat of a death cross looming on the daily chart, ORDI struggles to maintain its position above the 61.80% Fibonacci level at $33.74. Currently, the altcoin trades at $36 following an 8% overnight decline.
Despite minor discrepancies in the daily Relative Strength Index (RSI), the possibility of a double-bottom reversal remains uncertain. However, as the retracement intensifies into a downtrend, the risk of breaking below $33 becomes increasingly imminent, potentially leading to a plunge to the 78.20% Fibonacci level at $20, signifying a potential 40% crash next week.
STX Faces 40% Decline Threat Amidst Eroding Support
STX’s price has plummeted by 45% over the past 40 days, breaching multiple support levels and testing the 200-day EMA. Furthermore, the downward trajectory has compromised the crucial $2 level, leading to a robust resistance trendline. Additionally, the plummeting prices have shattered longstanding support trendlines, heightening the likelihood of a decline in STX’s price should the 200-day EMA fail to provide a dynamic cushion.
A breach below $2 and the 200-day EMA could trigger a significant supply dump in Stacks, potentially driving the altcoin’s price down to the $1.25 mark or the 78.60% Fibonacci level.
TIA at Risk of Losing Critical Support at $9
Under the influence of a formidable resistance bearish trendline, TIA struggles to regain bullish momentum, trading at a nearly 55% discount. The retracement phase has undermined the early phases of the bullish rally, with the downtrend breaching the 50% Fibonacci level and finding substantial support at the $9 zone or the 61.80% Fibonacci level. However, the persistent downtrend and burgeoning supply stifle any bullish resurgence.
Should supply levels surge in the altcoin market and Bitcoin dip below $60,000, a decline to $6 becomes a distinct possibility.
Will These Altcoins Weather the Storm Next Week?
A bullish resurgence in Bitcoin could potentially catalyze a broader market recovery, offering a lifeline to these altcoins. However, with Bitcoin struggling to maintain its position, a dip or consolidation below $60,000 could exacerbate the downturn in these altcoins. Consequently, astute traders may find short-selling opportunities in the aforementioned coins amidst the prevailing market conditions.