The crypto sentiment has been the worst since 2018, and that has caused the whole market to collapse. Bitcoin even got below its previous-cycle all-time high level for the first time. Bitcoin cost $20,000 at the end of 2017 and traded at $18,000 just one week back. While many think this sell-off could continue, there are some vital signs that the altcoin season might be coming. Let’s look at some altcoins from the TOP 50: Polygon, Chainlink, Polkadot, and Cronos.
Related blog: Crypto outlook: Bitcoin, Ethereum and Solana
While Bitcoin is down about 70% from its all-time high level of $70,000, Polygon (MATIC) fell by 90% all the way from $3 to $0.3. Polygon is considered one of the pioneer projects of Layer 2 solutions that Coinbase and Binance backed. It grew in popularity, and its price exploded as a result. It has many use cases connected to gaming, NFTs, and much more.
Although the whole crypto market took a substantial hit in the last couple of months, Polygon still shows its presence with a nine-digit daily trading volume. MATIC has a $4.6 billion market cap and hit a strong support level from May 2021. The buy signal was supported by bullish divergence, and MATIC jumped by 100% in just a few days. A slight uptrend is expected after some price pullback towards $0.4-$0.5. Then MATIC could be ready for the next target of $0.8 to $1.
Chainlink is also one of the more favourable cryptocurrencies. Like Polygon, it provides a helpful technology (e.g. VRF technology) applicable in gaming and many other spheres. This cryptocurrency saw its peak one year ago at a little above $50, and it recently reached almost $5, also down by 90% from its all-time high level. Chainlink currently sits at 22nd place according to its $3.2 billion market cap.
You might wanna read: Money management – what every trader needs to master?
Unlike Polygon, Chainlink went under its support zone from summer 2021, attacking support from September 2020. The next few days will be important as Chainlink needs to hold that support and break the trendline to start an uptrend. Many people wonder whether they should buy cryptos or not, but it’s a fact that the TOP crypto projects are down by 90%, so only a slight movement upward could result in a significant profit. If Chainlink gets above the marked trendline, some analysts expect a move to $12-$15.
Polkadot, also known as the “Ethereum killer,” is currently 11th cryptocurrency according to its $7.8 billion market cap, and it went through two major uptrends in 2021. The uptrend of 2022 is still pending. Polkadot fell from its all-time high of $55 to $6.5, declining by almost 90% like the other big crypto projects.
Polkadot went below the support zone from the summer of 2021 and reached the support zone from December 2020. Considering all these price declines, it’s clear to say that they are all oversold and can be ready a pump. Polkadot stopped at the support, created a double bottom formation, and showed strong signs of a possible upward movement. It recently even broke the trendline in the chart, eyeing a move to $15-$18.
Cronos, one of the biggest crypto exchanges in the world, has its own coin as well. Since its launch, there were no great returns like Binance coin, dYdX coin, and other exchange tokens. However, 2021 allowed this cryptocurrency to rise by more than 1,000% to almost $1. Then it crashed by 90%, tested its support zone from May 2021, and showed signs of lifting off.
Right now, Cronos sits at 23rd place according to its $3.1 billion market cap and is oversold like many other crypto projects. However, Cronos sponsors many sport activities through many actions and is an innovative company that is here to stay. A clear bullish divergence was formed after the recent market drop, and it’s possible to expect prices to rise to at least $0.2 shortly.
If you’re an investor, this may be a very interesting time to get in, as the overall sentiment has been the most bearish in the last couple of years, and prices are significantly oversold. If you’re looking to pick up on some projects, make sure you diversify with several ones and base all your decisions only on your market research.
Post has no comment yet.