Most cryptocurrencies have had a small reaction, but bulls are still scared. With an analysis it is possible to see what is to come
Avalanche marked a double bottom on its 4-hour chart. With a bullish RSI, buyers had to enter the $96 level to confirm a further rally. Litecoin and MANA jumped above their 20/50 SMA but failed to gather trend-altering volumes, as reported by AMDcrypto
Avalanche (AVAX)
AVAX broke its previous drop at the 61.8% Fibonacci support. Upon reversing, it recorded a monstrous ROI of 67.8% (from its December 13 low) to reach its three-week high on December 22. Since then, Altcoin has seen a 37.58% retracement and tested the $79.3 support.
Last week, after testing the support above, AVAX saw a double bottom on its 4-hour chart. Its neckline was close to the control point at the $89 mark. Now, the $96 zone was a vital point to overcome for AVAX bulls. Any further rollbacks would find testing support near the Control Point.
At press time, Altcoin was trading at $91.73. The RSI marked bullish readings but reversed from the 61 mark. Furthermore, the Squeeze Momentum Indicator suggested a phase of high volatility in the short term.
Litecoin (LTC)
LTC managed to find an oscillating range between the $167 and $143 mark until the January 5th drop. After exhibiting low volatility, LTC dropped more than 19% to reach its five-month low on January 10th.
The bulls failed to hold the crucial $143 support level as the bears turned it into immediate resistance. With that bounce, LTC found itself above the SMA 20/50.
At press time, LTC was trading at $136.66. The RSI dropped after testing the overbought mark but still maintained its uptrend. It becomes important to watch for lower peaks on the Volume Oscillator, suggesting a weak bullish move.
Decentralized (MANA)
On its 4-hour chart, Altcoin has seen a breakdown from the descending (yellow) channel to the two-month support of $2.7.
It succumbed to the broader sell, retracing the previous bounce in a descending (white) channel. Thus, MANA hit its five-week low on January 10th.
Now, with gains of over 17% over the past three days, MANA has reclaimed support at $3.02.
At press time, MANA is trading above its 20/50 SMA at $2.94. The RSI tested the 60 mark once more and showed a bullish bias. Furthermore, the Volume Oscillator has marked lower peaks, suggesting a weak bullish move.
