It’s been a while since the crypto market made any significant move, be it up or down. When Bitcoin breached the 20k price area, everyone panicked and thought that prices were going to continue downwards. However, prices quickly recovered and went back to 21K. After a brief consolidation, some cryptos are witnessing a risky price action. Which cryptos should you be wary of? Let’s talk about the 3 risky cryptos that might collapse soon.
The Crypto Market is RED – What’s Happening?
After a strong bearish trend since the beginning of the year 2022, the crypto market managed to retrace higher above the USD 800 Billion market cap valuation. This did allow some cryptos to rebound higher, while others consolidated around their strong support areas. However, we can see that the market is losing its momentum recently, and is going back lower.
The total market cap of cryptos diminished by more than 70 Billion over the last week, dropping from USD 974 Billion to a current market cap of USD 901.
How to Spot Risky Cryptos?
In the current market dynamics, it is easy to spot risky cryptos. Those will be the ones that are approaching a very strong support area, which can be also considered a psychological price area as well. As an example, we can consider for Bitcoin that the $20,000 price mark is a very important area. For a long time, it was a strong target for investors during the bull market. Additionally, during this current bear market, it represents a strong support area.
Top 3 Risky Cryptos – BEWARE of a Heavy Crash!
#3 Polygon MATIC
MATIC prices managed to slightly retrace higher and made significant gains in the past week. However, seeing that the market is back to being bearish, MATIC can be up for a serious adjustment lower, bringing prices back to their initial support price of $0.40. If this happens, we can expect prices to sink to the next support of $0.30.
#2 Helium (HNT)
Helium tried to also rebound higher after it reached its low price of $6.7. However, it soon went back up to $12, almost doubling in 3 weeks. However, now that the crypto market is moving downwards, HNT price is dragging lower. If prices manage to break the important $8 price mark, we can expect HNT to continue falling towards $6, then $5.
#1 Bitcoin (BTC)
It is obvious that Bitcoin is the number one most risky crypto currently. This is because if BTC prices fall, the entire crypto market falls. Bitcoin currently has more than 40% dominance over the crypto market. Despite BTC prices managing to retrace from the low of $17,500 to $22,000, prices today are bearish again, eyeing the important $20,000 price mark. If this level is broken again, it is bad news for the entire crypto market, as the crash might continue sending BTC prices down to $12,000.
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Source: https://cryptoticker.io/en/beware-those-risky-cryptos-approaching-critical-area/