The Bitcoin crash below $60000 this week has raised Fear, uncertainty, and doubt (FUD) among market participants. While the current consolidation trend projects no clear sign of bottom formation, altcoins like Polygon (MATIC), Pepe coin (PEPE), and Cardano (ADA) in the oversold state hold a high potential for a price reversal.
Bitcoin Crash Sub $60k Sparks Discounts Opportunity for Altcoins
The crypto market witnessed a renewed recovery sentiment earlier this month as most major altcoins rebounded from crucial support. However, the Bitcoin crash to $56000 on Thursday has raised questions on market sustainability and the risk of a potential crash.
According to Santiment, Polyon (MATIC), Pepe coin (PEPE), and Cardano (ADA)’s 30-day Market Value to Realized Values (MVRV) have plunged to -17.43%, -16.93 and -12.95%, respectively. These negative values suggest that investors who purchased MATIC, PEPE, and ADA in the past month are underwater -17.43%, -16.93%, and -12.95%, respectively, from their buy price.
This indicator is used to asses buy and sell opportunities based on the average entry for multiple users. A negative value indicates that short-term holders are at a loss. Typically, long-term investors accumulate in these zones as the risk of a further sell-off is minimized. Therefore, these tokens have the highest probability of a comeback should the crypto market bounce.
MATIC Price Resonate within Bullish Pattern
The Polygon price shows a falling wedge pattern in the daily time frame chart. The two converging trendlines of this pattern signal the weakening of bearish momentum that could lead to imminent breakout.
Despite the Bitcoin Crash below $60000, the MATIC price held above $0.35 support, utilizing the dynamic support trendline. By press time, the Polygon coin trades at $0.4 while boasting a market cap of $3.98 billion.
A potential breakout from the overhead trendline will signal the end of correction and bolster buyers to a fresh reversal. The post-breakout rally could drive assets 40% up to target $0.55.
The Average Directional Index (ADX) at 55% accentuates an overextended downtrend for this asset.
Pepe Coin Price to Hit Multi-Month Support
The frog-themed meme coin PEPE witnessed a notable downfall from $0.0000088 to $0.00000728, registering a 17.2% weekly loss. The falling price will likely seek support from the wedge pattern at $0.00000645 before the next recovery leap.
If the anticipated Bitcoin crash below $55000 fails, the PEPE price could rebound and breach the dynamic resistance. A bullish breakout will accelerate the bullish momentum and target $0.000013, projecting a potential growth of 82% from the current price.
A downtick in the lower boundary of the Bollinger Band indicator hints that sellers remain dominant and buyers need solid support to counterattack.
ADA Price Bounced from Major Support Amid Bitcoin Crash
Amid the recent market recovery, the Cardano price bounced from an ascending trendline that had been intact since September 2020. The bullish turnaround uplifted the asset from 18.3% to trade at $0.32, while the market cap jumped to $11.73 Billion.
If the bullish momentum sustains, the ADA price could rise by 30% to challenge the upper boundary of the broadening channel pattern. This pattern’s diverging trendlines highlight uncertainty among traders and the lack of conviction from buyers or sellers.
Thus, a potential breakout from the overhead trendline is needed to signal the end of the current correction trend.
The Relative Strength Index at 37% signals a bearish sentiment among traders.
However, the downtrend will be prolonged if the Cardano price reverts from the overhead trendline at $0.42.
Frequently Asked Questions (FAQs)
These altcoins are flashing buy signals based on the MVRV metric, indicating they are in an oversold state.
MATIC and PEPE are forming falling wedge patterns, a bullish reversal indicator. If these patterns break out, MATIC could see a 40% rise, while PEPE could gain up to 82%.
ADA has rebounded from a strong multi-year support trendline. If bullish momentum continues, ADA could rise by 30%.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/why-matic-pepe-ada-price-bitcoin-crash/
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