The market started April with a buoyant mood, but from the middle of the month the mood of investors changed from plus to minus..
The BeInCrypto editorial board looked at 4 altcoins that could suffer further losses in May.
April turned out to be a very turbulent month for the crypto market and passed under the sign of increased volatility.
By the end of the month a bearish mood prevails in the market. The BeInCrypto editorial board looked at 4 altcoins that have been hit hard, while giving warning signals of a likely continued decline.
Polygon (MATIC) has lost key support
MATIC is the native token of the Polygon network, a popular second-level scaling solution for the Ethereum blockchain.
It helps reduce cost and speed up transactions with sidechains. These are separate blockchains that operate independently of Ethereum, but are connected to the main network.
Polygon also helps move decentralized applications (dApps) to a linked blockchain system.
According to the results of technical analysis, on April 19 MATIC broke the ascending support line, which has been present on the chart since the beginning of the year.
This bearish breakout could be an indication of the end of the bullish move and the beginning of a new downward phase.
The price lost important support around $1.05, represented by the Fibo level and the horizontal level.
Fibonacci levels are traditionally considered the most probable springboards for stopping and reversing the price after a significant advance in any one direction.
As expected, at these levels the market can win back a part of the distance covered and only after that it resumes the movement in the initial direction.
After the perfect breakout, MATIC tested the $1.05 area as resistance (red icon). All this promises the altcoin exchange rate to continue its decline before it finds the bottom.
Less than current levels on the chart, there is a lack of significant supports. This bodes well for a drawdown to the low of the year at $0.74.
In the meantime, a close above $1.05 would neutralize this bearish scenario.
In the meantime, a close above $1.05 would neutralize this bearish scenario and may condition a rise to the former uptrend support line at $1.20.
However, the current bearish momentum reminds us that the most likely outlook at the moment is for further declines.
The PancakeSwap (CAKE)
PancakeSwap (CAKE) hits one-year low
The Altcoin CAKE broke the ascending support line on April 19 and has been declining ever since.. The drop in price was rapid, with no attempted bounce.
The token sank to a new low of the year at $2.57 and may now break the $2.55 horizontal resistance area. If successful, CAKE would absorb the 2022 lows.
In view of the lack of significant supports below the current price levels, this could trigger a sharp drop to $0.70.
In the meantime, a bounce of the price can stipulate a growth towards the area of $3.20, which should offer resistance to the bulls.
Optimism (OP) targets a breakout from a bearish pattern
The OP token has been declining along a downward resistance line since early February. There is also an active horizontal support area of $2.0 on the chart.
Together they form a descending triangle, which is considered a bearish pattern. This means that the most likely scenario for the price to exit it is a breakout in the southern direction.
The most likely scenario is a breakout in the southern direction.
If that happens, the OP exchange rate could fall to the next closest support at $1.30. On the other hand, if the market bounces back from the $2.0 area, it could continue rising at $2.25.
On the other hand, if the market manages to bounce from the $2.0 area, it may continue rising towards the downside resistance line at $2.25.
The Graph (GRT) declines after a correction
The Graph (GRT) is a cryptocurrency of the same name for querying and indexing data from public blockchains. GRT token GRT enables this decentralized indexing protocol.
The GRT exchange rate launched a growth phase on March 10, but failed to build on it, and the trend reversed on April 21.
As a result of the decline, the price broke the uptrend support line, suggesting that the upside phase is over.
Wave analysis, meanwhile, indicates that the preceding rise is very similar to the A-B-C corrective structure.
Since the structure was ascending, it means that the trend itself is bearish.
If the decline continues, the altcoin could slide to the next support at $0.095. A price recovery above the rising support line would cancel this bearish scenario and could trigger a rise towards $0.22.