Bitcoin (BTC) price dropped from $23,435 to $22,259 in one hour on March 3, while most altcoins had to breach the uptrend support that extended to early February. In this article, let’s take a look at the technical state of the high-volume altcoins CRO, DOT, LINK, OCEAN, and AVAX on the Binance list.
These 5 altcoins from Binance list may face decline
Cronos price supports RSI for reversal
Cronos (CRO) has been fluctuating in recent days with drops of more than 5%. The price continues to the end of the week with horizontal movements. Technically speaking, a bounce backed by RSI looks pretty good right now.
Thus, the CRO can recover the 5% losses of the last days and even catch up with the previous gains. The critical scenario will be a break above $0.075. Once the bulls achieve this, they can also catch the 55-day SMA and head towards $0.08.
Meanwhile, with a bounce back towards $0.075 comes a huge risk. If the bears use this level to force any bullish rebound, a definitive rejection could result in a definitive bounce and could see the bears gain even more losses. Technical analysts say the bears could retake the $0.07 zone, which coincides with the S1 support level in this case.
Polkadot price at risk of 20% drop
Polkadot (DOT) is currently consolidating after a short-term uptrend that started at the beginning of the year. Its price is trading below the 50, 100 and 200-day EMAs at $6.36, 6.59 and $6.17.
The altcoin has made attempts to stay above the trendline, but it is not yet clear how it will react from the trendline. A 20% drop from $6.04 could push Polkadot price to $4.8, a level previously tested in the first week of January 2023. Depending on Bitcoin’s recovery, DOT may attempt to retrace to February’s close of $6.36.
If the bearish thesis is confirmed and it falls sharply, DOT price could erase all its gains in 2023 and return to the $4.23 level where it started the uptrend. RSI is close to oversold (30) at 32.20. Since mid-February, the RSI has been bearish, similar to Polkadot price. In this environment, if the DOT rises above the three EMAs mentioned above and turns the resistance at $6.84 to support, it could invalidate the bearish thesis.
Chainlink bulls may see their efforts wiped out
Chainlink price is threatening to prove that the bear 2022 trend is still in motion and the crypto winter is not over yet. Before we start talking about this possible doomsday scenario, there is one element that may see a fix right now. This $5 level and $7 support can be tested in March if it is broken soon.
Therefore, LINK is in a dangerous position as it risks a 27% drop and its earnings since the beginning of the year to zero again. If the bulls completely miss the ropes, the probability of a drop to $5 could get even stronger. If $5 is broken in March or April, it will be hard to even tell if it will find support at $4.
Fortunately for the bulls, this $7 support carries both the 55-day and 200-day SMAs as supportive measures. The 200-day SMA is certainly important and can be vital to support price action. Analysts expect the bulls to reach $12, with a 65% gain by this summer, once the rebound rally for 2023 is confirmed.
OCEAN price drops
OCEAN price started the weekend with a 9% drop. The downward move was catalyzed by the rejection of the 8-day EMA on March 3.
OCEAN price is currently trading at $0.376243. Still, it remains 129% above its annual opening price. A Fibonacci retracement instrument surrounding the January 1 opening price of $0.16 and the year high of $0.58 shows that the current sell-off is only a 38.2% retracement of the winter rally. The failure of OCEAN to hold the support above the resistances now creates bearish potential near $0.26. The bearish scenario would represent a 25% decline from OCEAN’s current market value.
While the recent drop is promising, the potential for the market to always turn upside down should not be underestimated. Traders should remember that OCEAN violated overbought conditions on the weekly RSI, a unique bullish strength indicator among its competitors. Therefore, the winter rally could only be receiving a cooling off period, returning to the $0.26 region before forming the next leg.
The earliest evidence that the correction is over will be a break above the previous high of $0.43. If the breach does occur, the bulls could re-track towards the yearly high of around $0.58.
AVAX price continues its downtrend
AVAX price started the weekend in the $16.50 region, down over 5%. The altcoin had already lost the support at $17.20 and was moving towards the critical support at $14.91.
Looking at the indicators, it seems that the trend will continue to progress. The Moving Average Convergence Divergence (MACD) indicator exhibited a bearish divergence that has not yet been invalidated a few days ago. The signal line (red) remains well above the MACD line (blue).
Similarly, the RSI is currently bearish. The fact that the indicator is in the bearish zone supports the possibility of further declines. So, if this scenario happens and AVAX breaks below the $14.91 support level, altcoins could test $14 and even lower with an additional 15% drop.
However, if the RSI bounces off the 30.0 level or slides into the oversold territory, a recovery rally could occur if supported by the bulls. Avalanche price must rise to the critical resistance at $20.32 and turn the zone into support to invalidate the bearish argument that could also lead to a five-month high to $21.58.
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