Key Takeaways
This week, the crypto market failed to notch an all-inclusive rally, extending the uncertainty it has faced since January. Due to this, most altcoins in the market recorded major declines, with some registering yearly lows.
As the market continued its seesaw movement, three altcoins faced significant downturns. In this analysis, CCN explains why their respective prices fell and what lies ahead for each.
Telcoin (TEL)
Telcoin is one of the cryptos that recorded one of the most losses this week out of the top 300. Within the last seven days, TEL’s price plummeted by 32.80% as demand for the altcoin continued to wane.
According to CCN’s findings, Telcoin became one of the top altcoin losers due to the invalidation of a bullish flag. Based on the daily chart, TEL formed a bullish flag after undergoing consolidation and correction from the end of February through the first days of March.
However, the major support for the bull flag rests at $0.0084, as a break above it could have triggered a rally. But that did not happen.
Instead, Telcoin’s price decreased below it, which was also near the 0.618 Fibonacci retracement level. As a result, the correction extended to $0.0053.
At the time of writing, the Awesome Oscillator (AO) has dropped to the negative region, indicating bearish momentum. Should this remain the same, TEL might see a price decrease to $0.0040.
However, if bulls push the altcoin’s value back to $0.0083, this forecast might be invalidated. In that case, Telcoin’s price might climb toward $0.010.
Raydium (RAY)
The Raydium token was also among the top altcoin losers this week, as its price fell by 28.60%. This decline was due to low demand and rising selling pressure around the cryptocurrency.
From a technical perspective, the RAY correction happened due to the formation of a bearish head-and-shoulder pattern. As seen below, the neckline of the pattern was at $4.73.
However, the token was unable to defend the level, thereby validating the downtrend. The Relative Strength Index (RSI) reading has dropped below 30.00, indicating that RAY is oversold.
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Therefore, if demand for the altcoin rises at any point, a quick bounce might follow. If this happens, the cryptocurrency’s value could rise to $3.
However, if bears control the price action, RAY could see another decline—this time, it might drop below the $1 support.
Grass (GRASS)
GRASS, which performed well toward the end of February, is among the top altcoin losers this week. Since reaching a peak of $2.75, the GRASS price has dropped to $1.56, registering a 27% correction this week.
On the daily chart, the price is attempting to recover part of those losses, but that is unlikely to happen due to the position of the Moving Average Convergence Divergence (MACD).
As of this writing, the MACD reading is negative, indicating the formation of a bearish divergence and momentum around GRASS. Should this remain the same, GRASS price might struggle to keep up with the uptrend.
Instead, the cryptocurrency’s value could sink to $0.91. However, if the altcoin retests the resistance around $1.62, the rebound might extend toward $2.76 in the coming week.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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