After an aggressive Bitcoin sell-off, many coins have slumped to new lows. Is this the perfect time for bottom fishing? Let’s see which Web 3.0 coins are showing signs of strength!
After an aggressive Bitcoin sell-off, many coins have slumped to new lows. Is this the perfect time for bottom fishing? Let’s see which Web3.0 coins are showing signs of strength!
Last week, Bitcoin pierced through the support at $30,000 resulting in many coins falling by over 15% in a single day. However, Bitcoin has since recovered and has bounced back above the $30,000 mark. It is important for traders to note that the bounce may only be temporary and could be a short-term retracement before Bitcoin heads for the support at $22,000. It is trading dangerously close to the support at $30,000 thus it is advised that traders stay light and avoid taking heavy positions or using leverage.
Not sure what we mean by leverage here? Check our guide on what is leverage in crypto trading!
Many coins analyzed last week have followed the path we anticipated and have broken down to hit new lows. However, this could be a chance to set the next support zones from which a reversal could be seen in the coming weeks. Therefore, in this week's technical analysis, we will be aiming at finding potential reversal zones for popular web3 coins. We will be using the 4H time frame to accurately find strong support zones!
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GMT/USDT
GMT was one of the strongest coins out of the coins analysed last week. However, we spotted a bearish RSI divergence which has played out and resulted in GMT hitting the oversold level earlier this week.
GMT was severally affected as it plummeted from $3 to $0.85 in just a week due to the sell-off and was trading 70% lower last week at a point before bouncing from one of the previous demand zones. A death cross was also seen last week as the 50-day moving average dropped below the 200-day moving average showing price weakness.
GMT is now consolidating in a tight range as it has not been able to clear the resistance at $1.74 thus the next leg up will only be seen once it flips the resistance. For investors looking to play it safe, fresh buys should only be taken above the old supply zone at $2.
DOT/USDT
Last week, we advised investors to stay away from DOT as it was unable to flip the supply zone at $15. This view proved to be beneficial as DOT fell sharply last week and set a new 52-week low of $7.30 as it plunged by 50%.
A support can be seen at $10.40 which may not be strong enough as DOT is on the verge of breaking the support very soon. Until the coin breaks the resistance at $13, investors should not expect any strong bullish moves as it is showing no signs of strength. A close below $10 on the 4H time frame will confirm a bearish bias as DOT may head towards yet another 52-week low.
BTT/USDT
Investors hodl-ing BTT may have to wait longer than they thought as BTT hit a new all-time low last week!
BTT has taken a huge nosedive in value as a vertical free fall was seen last week. As seen in the chart BTT fell in an almost vertical fashion forming large red candles as it hit a new all-time low. The coming weeks may not be the best for BTT investors as it has formed yet another bearish pattern. A bearish flag pattern can be seen forming which is a continuation pattern hinting towards a new low being set soon.
Investors should stay away from buying BTT as it is looking like a new low may just be around the corner and a reversal is nowhere to be seen anytime soon. A close below the symmetrical triangle will lead to another sharp drop in the price.
BAT/USDT
Bears have continued holding a strong grip over the bulls in BAT as the strong downtrend has continued as BAT broke the February 2022 low last week. BAT is making a structure similar to that of GMT’s however it has been in a downtrend way longer than GMT. Therefore, investors must be cautious.
BAT is now consolidating in a tight range and can now head towards the low set in February 2022 or the February 2021 low. It is too early to say which side it could head. Investors should wait for a clear breakout.
If BAT breaks the resistance at $0.44, we may see a quick impulsive move towards the next resistance at $0.55. Without support from the overall market, it is unlikely that the bulls return in BAT as it is a low beta token!
FLUX/USDT
In last week’s analysis, we had concluded with FLUX being a strong coin to watch out for following which a brief impulsive move was seen in which FLUX rallied by over 40%.
Unfortunately for FLUX investors, the bullish move was not sustained by FLUX and it shortly collapsed in price leading to a drop of over 70%. A resisting trend line can now be seen and any bullish moves will only be seen once the trendline is broken.
Investors must be patient and should avoid buying FLUX before a breakout from the trendline. It is looking like FLUX may also be forming a bearish flag pattern which will be confirmed once a breakdown below the support is seen at $0.65.
Investors should expect the downtrend to continue if a close below the $0.65 level is seen.
FIL/USDT
We had expected FIL to test the supply zone in the previous week’s supply zone before hitting new lows and that is exactly what happened last week!
FIL dropped by over 50% after testing the supply zone at $16 and is still not showing any signs of a reversal. Investors should see another leg breaking the current lows as FIL is still lacking volumes and may soon break the support zone at $8.
A close below $8 in the 4H time frame may mark the start of the next leg. Investors should stay clear of FIL for the moment.
Summary
A quick recap of all the coins:
- GMT was one of the stronger coins last week, however, after the sell-off, it seems to have lost a lot of strength. Investors should only look to buy GMT once it is able to clear the resistance at $1.72.
- Investors may not see an impulsive move in DOT as it is on the verge of breaking a crucial support level at $10.40. Longs should only be taken once the resistance at $13 is cleared.
- A strong bearish pattern has formed on the chart of BTT thus investors should steer clear of taking any fresh long positions as a breakdown could be seen anytime soon. A strong sell-off could soon be seen once a close below the symmetrical triangle it has formed is seen.
- Things have not changed since last week for BAT as bears have continued to hold a strong grip over the bears. The coming weeks are looking uncertain as BAT is a low beta token and may not be able to do much without support from the overall market.
- A strong impulsive move was seen after the analysis from last week, however, FLUX has fallen by 70% since and is now a reverse flag pattern.
- FIL continues to remain weak and investors should stay away from FIL for the coming weeks as the bears seem far too strong for an up move to be seen.
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