The crypto market has finally gone through a pullback after the bloodbath in the last few months. Ethereum was able to recover from $900 to $1,800. Is this growth going to continue, or will the downtrend continue?
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Ethereum was able to grow from its bottom in the middle of June little below $900 by 100%, but it is slowly approaching a strong sell zone with several signs of a possible move downwards. Although a triangle pattern indicates a move upwards in the short term, it is near strong resistance and moving average (EMA200). If you look at the last reaction to EMA200, you can clearly see it started a massive selloff.
The situation looks very similar, with the RSI indicator also showing the market is currently overbought and could go down soon. The next few days will be important because if ETH gets above the $1,800 mark, it can rise to the zone of $2,000 to $2,300. But if not, and it breaks the trend line in the chart, another possible selloff to $900 support is likely.
While all altcoins are oversold and decreased in price drastically over the last eight months, Litecoin is nearing strong support of $20, where the market bounced upwards in 2019 and 2020. If Litecoin gets somewhere between $20 and $40, it might be ready for a long-term investment purchase with a possible profit target of at least $100, possibly a little higher.
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Algorand is in a similar situation as Litecoin as it is approaching a key level. $0.15 support is a zone where the market bounced up several times in the past as you can see from the chart. In addition, the RSI indicator has been showing an oversold area for quite some time, so that could be an excellent long-term purchase. However, Algorand still may create a new low below local support at around $0.3, and that is when the real buying opportunity might come in.
The bottom line
Crypto markets are currently dead and filled with a lot of bad news as another crypto lending company stopped withdrawals, US Treasury targeted Tornado Cash, and prices have no real reason to jump. However, great buying opportunities are on the way as markets are cyclical, and after every bear market, there is a bull run.
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