The Crypto Market Outlook and 3 Altcoins to Consider Shorting

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

Crypto Market Cap Holds Above 2017 Highs

The 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 capitalization remained within the high resistance of $760 billion in 2017, although it created a wick below. Nevertheless, the $760 billion horizontal support zone is still intact.

Additionally, the weekly IRS is generating a bullish divergence (green line). This comes after the indicator fell to a historic low of 26 in June 2022.

Therefore, if the price of the crypto market capitalization bounces or breaks below the $760 billion support zone, this will determine whether the crypto market forecast is bullish or bearish.

Since a bounce would also validate a bullish divergence from the weekly RSI, it would be seen as a vital sign of a bottom for crypto prices.

Cardano price falls below $0.35

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

The dip was crucial as it caused a breakdown of the $0.35 long-term support zone, which had previously been in place since January 2021.

Additionally, the breakdown caused the RSI to invalidate its bullish divergence trendline (green line). Accordingly, a drop towards $0.15 is the most likely scenario. This would equate to a 50% decrease from the current price. Long-term Cardano number of waves is also bearish.

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

Algorand Falls to annual low

Another altcoin that has fallen significantly is ALGO. The Algorand the price has been declining since November 2021, when it peaked at $2.99.

The downward move caused a breakout below the $0.28 area, which has now been validated as resistance (red icon).

Unlike Cardano, the weekly RSI for ALGO has generated a bullish divergence (green line) and its trendline is still intact. As a result, the potential for a bullish reversal is higher. However, a close above $0.28 is required to confirm this.

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

COTI Breaks down below $0.09

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

The downward move also caused a break of the $0.09 horizontal support zone. This was a crucial level as it acted as the previous all-time high resistance in July 2020.

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

Accordingly, 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 crypto market analysis from BeInCrypto, Click here.

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#Crypto #Market #Outlook #Altcoins #Shorting #Crypto

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