Altcoins Risk Fresh Decline as Bears Target Previous Lows

May 26, 2022 at 10:00 // Price

Which cryptocurrency was the biggest loser of the week?

UST, WAVES, KDA, MKR and HNT are the lowest performing cryptocurrencies this week. Altcoins failed to sustain their recent rallies as they are rejected at their respective resistance levels. The cryptocurrencies could fall further if the previous lows are breached.

TerraUSD


TerraUSD (UST) has resumed a sideways trend after the May 12 plunge. The cryptocurrency’s upside moves are resisted by the 21-day moving averages. Hence, the sideways movement went below the moving average lines. 


The price dynamics of the altcoin is characterized by small indecisive candlesticks called doji and spinning tops. The candlesticks indicate that buyers and sellers are undecided about the direction of the market. The cryptocurrency is above the 40% area of the daily stochastic. It has bullish momentum but is weak. It is the cryptocurrency with the lowest performance last week. The cryptocurrency has the following characteristics:


USTUSD(4+-Hour+Chart)+-+May+24.png


Price: $0.3172


Market capitalization: $783,530,091


Trading volume: $108,839,699 


7-day loss:46.61%


Waves


Waves (WAVES) has continued its downward movement as the bears broke below the previous low of May 12, which corresponds to a price level of $5.67. However, other altcoins are recovering above the May 12 price level. The current price decline is insignificant as the price movement is characterized by small indecisive candles (doji). Meanwhile, WAVES is below the 20% area of the daily stochastic. This indicates that the altcoin is deep in the oversold area of the market. 


The current downtrend is likely to subside as buyers emerge in the oversold region and push prices higher. WAVES is the cryptocurrency with the second worst performance this week. It has the following characteristics: 


WAVESUSD(Daily+Chart)+-+May+24.png


Price: $5.79


Market capitalization: $629,262,106


Trading volume: $244,888,228 


7-day loss: 20.62%


Kadena


Kadena (KDA) is in a downtrend, but the upside correction is facing rejection from the 21-day moving average line. The cryptocurrency is declining after the rejection of the resistance at $3.45. Nonetheless, if the altcoin falls, the previous low at $1.28 is likely to be breached. If the altcoin falls and finds support above the previous low, the market will resume its uptrend. 


During the last price action, Kadena fell into the oversold area of the market as buyers emerged to push prices higher. However, the downtrend will resume if the bears fall below the previous low. KDA is the cryptocurrency with the third worst performance this week. The cryptocurrency has the following characteristics: 


KDAUSD(Daily+Chart)+-+May+24.png


Price: $2.40


Market capitalization: $2,402,824,289


Trading volume: $23,086,610 


7-day loss: 17.66


Maker


Maker (MKR) is in a downtrend, but has corrected upward and rallied above the 21-day moving average line. Last week, the altcoin moved between the moving averages. If the bulls had broken above the 50-day line SMA, the uptrend would have started. However, on May 23, the bears broke below the 21-day moving average. This suggests that the altcoin could come under selling pressure again. 


In previous price action, the cryptocurrency fell into the oversold area of the market as the bulls bought the dips. Meanwhile, Maker is above the 30% area of the daily stochastic. This indicates that the market is in a bullish momentum. Maker is the cryptocurrency with the fourth worst performance last week. It has the following characteristics: 


MKRUSD(Daily+Chart)+-+May+24.png


Price: $1,306.38


Market capitalization: $1,313,668,726


Trading volume: $124,840,741 


7-day loss: 17.58%.


Helium


Helium (HNT) is in a downtrend as the altcoin regained the previous low at $6.49. The upside correction was staved off at the $10 resistance level. The altcoin has fallen above the $7 support as it resumes consolidation above it. The uptrend will continue if the current support holds. 


Meanwhile, on April 30 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that HNT will fall to the level of 1.272 Fibonacci extension or the price level of $8.07. The price action shows that Helium has fallen below the 1.272 Fibonacci extension level. It could regain the previous low at $7. It is the cryptocurrency with the fifth worst performance last week. It has the following characteristics:


HNTUSD(+Daily+Charta)+-+May+24.png


Price: $7.74


Market capitalization: $1,726,090,310


Trading volume: $16,561,351 


7-day loss: 15.32%


Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

Source: https://coinidol.com/altcoins-risk-fresh-decline/