The crypto market outlook and 3 altcoins to consider shorting

Cardano (ADA), Algorand (ALGO) and COTI are three altcoins that have bearish looking charts and could crash in the short term.

Crypto Market Cap Holds Above 2017 Highs

Total crypto market capitalization (TOTALCAP) has fallen since hitting an all-time high of $3 trillion in November 2021. The decline led to a low of $727 billion in November 2022.

Interestingly, the cryptocurrency market cap has held within the 2017 high resistance of $760 billion, even though it has created a wick below it. However, the $760 billion horizontal support area is still intact.

Also, the weekly RSI it is in the process of generating bullish divergence (green line). This comes after the indicator fell to a record low value of 26 in June 2022.

Therefore, whether the Crypto Market Cap price bounces or breaks below the $760 billion support area will determine whether the cryptocurrency market prediction is bullish or bearish.

Since a bounce would also validate a bullish divergence on the weekly RSI, it would be considered a vital sign of a bottom for cryptocurrency prices.

Cardano price breaks down below $0.35

An altcoin that is showing bearish signs is ADA. the cardano price it has fallen since hitting an all-time high price of $3.10 in August 2021. It hit a low of $0.29 in November 2021.

The low was crucial as it triggered a breakout of the long-term support area of ​​$0.35, which had been in place since January 2021.

Furthermore, the breakout caused the RSI to invalidate its bullish divergence trend line (green line). As a result, a drop towards $0.15 is the most likely scenario. This would equate to a 50% decrease from the current price. Cardano in the long term wave count it is also bearish.

Conversely, a weekly close above $0.35 would invalidate this bearish Cardano price prediction.

Algorand Drops to annual low

Another altcoin that has fallen considerably is ALGO. the algorand price it has declined since November 2021, when it peaked at $2.99.

The move lower triggered a break below the $0.28 area, which has now been validated as resistance (red icon).

Unlike Cardano, ALGO’s weekly RSI has generated bullish divergence (green line), and its trend line remains intact. As a result, the potential for a bullish reversal is greater. However, a close above $0.28 is required to confirm it.

Conversely, the next closest support area is at $0.20.

COTI It breaks down below $0.09

the COTI price it has fallen since reaching an all-time high of $0.69 in October 2021. The move lower led to a low of $0.06 in November 2022. It followed a descending resistance line, which triggered a rejection on November 9 (red icon).

The move lower also triggered a break from the $0.09 horizontal support area. This was a crucial level as it acted as the all-time previous high resistance in July 2020.

Like ADA, the weekly RSI has invalidated its bullish divergence trend line (green line).

As a result, a drop towards $0.035 is the most likely scenario. A weekly close above $0.09 would invalidate this bearish COTI price prediction.

For the latest BeInCrypto crypto market analysis, Click here.

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