The cryptocurrency market has recently experienced a steep decline, primarily due to significant selling pressure. This downturn has intensified investors‘ fear, uncertainty, and doubt (FUD), prompting many to offload their holdings and exert further pressure on weaker altcoins. While the general market sentiment remains optimistic for top altcoins, several others are expected to see sharp price falls in the coming days. Here is a cautious outlook for some of the altcoins with substantial downside risks.
HBAR Faces Risk of Breaking 200-Day EMA
Hedera’s HBAR is currently on a strong downward path, trading below its 50-day Exponential Moving Average (EMA) and testing the 200-day EMA along with a long-term support line. The altcoin has already slipped below the critical psychological support level of $0.10. With bullish support under threat, the dynamic support at $0.094 might soon give way, potentially pushing HBAR’s price further down towards $0.073.
VET Faces Risk of Breaking Trend Line
VeChain’s VET is also under intense pressure from a descending support trend line, exacerbated by the gap between the 200-day and 50-day EMAs. The 7.92% drop on June 7 resulted in an engulfing candle, breaking a previous horizontal trend and signaling a possible bearish trend. An additional 2.03% decline over the past 24 hours suggests a continuation of this downturn. If VET falls below the support trend line, it may drop to the support level of $0.026.
ALGO Sends Bearish Signals
Algorand’s ALGO experienced a 6.20% decline on June 7, disrupting its weekly recovery and indicating a potential break below $0.16. The convergence of the 200-day and 50-day EMAs suggests a death cross, signifying a shift to a bearish trend. If ALGO breaks below $0.16, it could see a significant drop, potentially reaching $0.10.
Key Takeaways for Investors
– Monitor for breaks below critical EMAs and support trend lines.
– Pay attention to price movements following significant percentage drops.
– Be cautious of psychological support levels being breached.
In conclusion, the cryptocurrency market is facing a challenging period with several altcoins under severe pressure. Investors are advised to stay vigilant and consider potential downside risks before making any trading decisions.