Bitcoin fell to around $ 37,000 at the beginning of May 2022, thus extending the depreciation range to almost $ 11,000, i.e. over 22% from 28th March this year.
The sell-off stopped near the downward trend line, which is the lower boundary of the downward channel, where last Sunday’s demand response reappeared.
If the calm increase has been observed since then, the BTC rate could soon return to around $ 40,000. It is there that the downward trend line, which is the upper limit of the channel, runs.
Whether these increases will continue for longer will depend on the fact whether there will be a larger supply reaction in the area of the nearest resistance, indicating its rejection, or whether the market will break through over $ 40,000 without significant problems, which in turn could drive further appreciation towards $ 41,500, where there is another line of a downward trend.
The current situation on the Ethereum quotes is also very interesting. The exchange rate of this cryptocurrency has recently dropped by more than $860, which was over 24 %.
These declines caused the ETH price to slide below the upward trend line. However, the subsequent sell-off did not last long as it stopped in the area of the next support at $2,735.
It was there that the demand reaction appeared last Sunday, creating a bullish engulfing pattern in tandem with Saturday. This arrangement may naturally support a slight rebound in the ETH quotations.
However, it seems rather unlikely that these increases would contribute to changing the market sentiment and returning Ethereum to the path of long-term gains.
Polkadot (DOT) quotations have slumped by almost 28 per cent in recent days, thus increasing the range of the ongoing from 2nd April this year depreciation to over 40 %. In turn, counting from the peaks in November 2021, the DOT price has already dropped by over 74 %.
Such a significant sell-off caused that last Saturday, the price of this cryptocurrency fell below the technical support of $15.80, thus reaching the lowest level since July last year.
Given that breaking one technical support level usually opens the door for further depreciation to the next support area, a drop below $15.80 could signal further sell-off in the DOT towards $10.50.
The current situation on Binance Coin (BNB) is also very interesting. The exchange rate of this cryptocurrency has remained inside the downturn wedge for a month now. This trend led to testing the upward trend line last weekend, where there was a demand reaction on Sunday.
It is hard to estimate now that it will eventually lead to a wedge breaking out of the formation in the near future. Statistically speaking, however, it is worth remembering that wedges are corrective systems, which means that the market is more likely to break out of this type of form in the direction consistent with the earlier move because — taking into account the increases in the second half of March this year. — in this particular case, it may be the breakout of the top and the subsequent continuation of increases towards $450, or further to $505, that speaks volumes.
Over the past few days, the XRP price has lowered by more than 29%, thus increasing the range of the ongoing from 28th March this year’s depreciation to over 38%. It is noteworthy that this sale led to a break of technical support just below $0.70 and stopped near another barrier of $0.58.
If only the gains from Sunday continued, the rate of this cryptocurrency could even return to the area of recently defeated support (now resistance) of $0.70.
The current situation on Polygon’s trading is also very similar. The MATIC course has fallen by over 32% over the last few days, increasing the range that has been held since 31st March this year’s depreciation to over 42%. Notably, this sale led to the defeat of technical support of $1.33 and stopped near the next barrier of $1.
If only the gains from Sunday continued, the rate of this cryptocurrency could even return to the area of recently defeated support (now resistance) of $1.33. However, taking into account that this level coincides with the golden proportion, i.e. measuring 61.8%. Fibonacci corrections from the last downward move, it seems highly probable that even if the MATIC rate returns to around $1.33, this is where a more significant supply response will appear again, which could initiate another wave of sell-off on the quotes of this cryptocurrency.
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