Chainlink, Cosmos, Aave Price Analysis: June 4th

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]

Source: LINK / USD, TradingView

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 [ATOM]

Source: ATOM / USD, TradingView

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 [AAVE]

Source: AAVE / USD, TradingView

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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