If April was a “ bull“ month for the cryptocurrency market, then all of May was a “bear, confirming that the market is in correction
While there is hope for a bullish reversal in June, bearish formations on these four cryptocurrencies warn that the worst may still be ahead.
Cardano (ADA) risks losing critical support
ADA is the native token of the blockchain platform Cardano, created by Charles Hoskinson.
As the results of technical analysis show, Cardano rate since the beginning of the year is moving along the line of upward support.
At the same time, on April 15, the price reached a new annual high of $0.46.. Since then, however, the price has fallen.
After the initial bounce on May 11 (green icon), the market was in danger of another bearish breakdown on May 26. However, there was another pullback after that.
Since the line has been on the chart for 151 days, its breakdown is likely to trigger a significant drop.
In that case, the nearest support area would be at $0.30, 19% below the current price. However, if the bounce continues, ADA might start rising towards the resistance area of $0.45.
The Relative Strength Index (RSI) reading is mixed.
It is a momentum indicator indicating overbought/oversold and bullish/bearish market sentiment, depending on whether it is above or below the 50 mark.
In this case, the RSI dipped below 50 (red icon) at the end of April, but it is currently in the process of recovering above that line.
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Algorand (ALGO) fell to a new annual low
ALGO is a native token Algorand blockchain. The price of ALGO started to rebound earlier this year, but failed to overcome the $0.28 resistance area.
Instead, it rebounded (red icon) and began a sharp fall. The decline took the token to a new low this year of $0.15 in May 2023.
The token is now approaching its 2020 low of $0.15.
The price is now approaching the 2020 lows at $0.14. There are no signs of a bullish reversal at the moment because of the sharpness of the drop.
The price has formed six consecutive bearish candles with consecutive declining close levels, which is an important sign of weakness.
In addition, the weekly RSI is below the 50 mark and is declining, indicating a bearish trend.
Despite this bearish outlook, if price closes the week above $0.16, it could start an upward move to the next resistance level of $0.21.
EOS risks falling to 2017 lows
EOS price has been falling since August 2022.
In January 2023, it formed a descending maximum (red icon), while creating a descending resistance line. After that, the price fell to the horizontal support area of $0.85.
This is the third time in the last 12 months that price has fallen to this level.
Since these lines weaken with each new touch, a bearish breakout of this area seems to be the most likely final scenario.
This scenario is also supported by the RSI, which is below 50, which is declining and has already made a bearish break of its upside support line.
If the price breaks down, the next support will come into play at $0.45. This level has not been reached by the market since late 2017.
But a vigorous rebound and a break of the downside resistance line would cancel this bearish outlook for EOS. In this case the growth to $1.80 will be possible.
DOGE also joined the bears
The Dogecoin project is one of the most recognizable “calling cards” of the crypto market and has many fans.
Although it appeared in 2013 as a joke coin, many already believe that DOGE has outgrown the status of a simple memcoin.
Read also: Dogecoin overtakes Ethereum in number of transactions
The DOGE price fell after rebounding in October 2022 from the $0.12 horizontal resistance area (red icon).
As a result of the decline, the price returned to the uptrend line, which has been on the chart since June 2022.
Since this line has been held for such a long time, its breakdown could be the catalyst for a sharp decline.
This is the fourth time the price has returned to this line. Since such lines weaken with each new touch, the most probable final scenario seems to be its bearish breakthrough.
With each new touch, the most probable scenario seems to be its bearish breakthrough.
With each new touch, such lines weaken.
If that happens, the DOGE exchange rate could return to the 2022 lows around $0.05.
In the meantime, a sharp bounce would invalidate this bearish hypothesis and could lead the price to rise towards the $0.12 resistance area.