As Bitcoin fell 7% and fell again to $ 36,000, a surge of selling pressure was evident across the broader cryptocurrency market. Companies like Chainlink, Cosmos and Aave each fell over 10% and observed certain levels of support on their respective charts.
Chain link [LINK]
Chainlink’s rise was stalled at the $ 32.5 resistance level as sellers re-emerged in the market. In the 4 hour period, some candlesticks broke below the $ 29 support and were hovering around $ 24 near the closest line of defense. Maintaining losses at $ 24 could move sideways and is likely to break out again if the broader market reverses direction. However, gains would likely be limited to the upper cap of $ 35.3.
A bearish crossover in MACD showed that the bears were back in control after the final days of bullish trading. Even the RSI fell sharply and fell below 40.
Cosmos’ rally failed to topple its 38.2% Fibonacci ($ 17.6) level and the bulls were in danger of losing the 23.6% Fibonacci ($ 14.20) level due to selling pressure. A breakdown could cause ATOM to fall back towards the demand zone between $ 10.4 and $ 8.6, despite additional support at the $ 11 mark.
The Momentum squeeze indicator showed that the bulls were quick to lose control in a volatile market. A closing price below $ 13 could also open up some short opportunities. The RSI has been on a steady uptrend since May 30th, but that trend was reversed when the index slid into bearish territory at the time of writing.
Aave was no exception to the wider market correction as its value has fallen 12% in the past 24 hours. At press time, the price was hovering near $ 248.2 support and a breakdown seemed likely from its specs. The Great oscillator marked rising bearish momentum and saw a decline below the half-line. The Parabolic SARs dotted marks moved above the candles at $ 405 resistance, indicating that a downtrend was underway.
Despite the losses, AAVE’s safety net was between $ 209 and $ 285 and a prolonged sell-off would likely be countered within that zone.
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