The correction in the cryptocurrency markets continues as the majority of digital assets either lost some of their previous gains or entered consolidations. According to analysts, such a trend was expected, but it is worth paying attention to some altcoins, including LINK.
Three altcoins on the downtrend: SOL, MATIC and FTM
Solana’s liquidation strike
Crypto analyst Arman Shirinyan assesses the technical outlook for SOL, MATIC and FTM. Solana (SOL) has suffered a major setback in the last two days. According to reports, the altcoin saw liquidation of over $120 million, causing its value to drop by about 10%.
The liquidations resulted from a sudden shift in the market that saw the bears put significant pressure on the SOL price. As a result, most of the long-term orders were removed from the market, showing that the bulls are not keeping up with the current market conditions. This news is especially disappointing for SOL, which has seen significant gains in the market in recent weeks. The altcoin has seen its value increase by around 30% in the last month alone, making it one of the best performing cryptocurrencies on the market.
Is Polygon (MATIC) in trouble?
Polygon (MATIC) has experienced a significant drop in value recently and has lost almost 10% in the last 24 hours. The drop comes after a statement that the company will cut 20% of its workforce, perceived as a bearish signal by many investors and traders. The reason a workforce cut is seen as a bearish trend in markets is often because it indicates a lack of confidence in a company’s future prospects. It indicates that the company is struggling financially or not performing as expected, which could lead to reduced demand for its products or services. As a result, investors may begin to lose faith in the company’s ability to grow and generate profits, which may lead to the sale of the company’s shares or tokens.
However, the real reason behind MATIC’s recent performance may be due to the general correction in the market and the outflow of funds from projects similar to MATIC including Ethereum and Cardano. As the crypto market is going through a period of correction, many investors and traders are moving their funds to safer assets or taking profits from riskier investments. Also, the outflow of funds from Ethereum and Cardano, two of the biggest players in the decentralized finance (DeFi) space, may also be affecting MATIC’s performance.
Phantom (FTM) facing problems
Fantom, a decentralized platform for smart contracts, has lost a key support technical level around its 21-day moving average. The 21-day moving average is generally considered a guide for assets moving in an uptrend, and its breach could indicate a potential change in trend for Phantom.
Phantom’s price is under selling pressure, and the recent drop in price is a sign of the challenges facing the project. The project has been heavily hoarded by whales lately, which may have added to the selling pressure in the market. Phantom has lost about 7% in the last 24 hours. While this does not seem like a significant drop, it is an alarming sign for the project, which has been performing well in the market so far.
“LINK price reversed its uptrend”
Crypto analyst Aaryamann Shrivastava describes what he saw in the technical drawing of Chainlink (LINK). LINK price has dropped more than 6.4% in the last 24 hours to $7.45. This contrasts with the previous week, which ended on February 20, when LINK rebounded significantly after a nearly 22% rally, even testing the resistance level at $8.27. The peak of the rally coincided with the bullish divergence between the price and the Relative Strength Index (RSI) momentum indicator. While LINK price made higher highs, the RSI did not, indicating a lack of momentum and underlying weakness in the recent push.
This eventually borne fruit on the decline, causing LINK price to test the close support level at $7.53, near where it is currently trading. This level also coincides with the 200-day Exponential Moving Average (EMA), which makes it a very important support base. Losing this support would cause LINK to drop to $6.77, another critical support level for the altcoin as it coincides with the 50-day and 100-day EMAs. A break below this support level will lead LINK price to drop below $6.00 and test the support level at $5.90.
Traders looking to short cryptocurrency should be aware that the LINK price may bounce off the 200-day EMA, where a new rally could begin. To gain positive momentum forward, LINK needs to turn the $8.27 resistance level into a support base. Such a move will give LINK the support it needs to reach the critical resistance at $9.33. Another break above this level invalidates the bearish thesis and allows the altcoin to test the $10.00 mark.
MASK Network continues its downtrend
cryptocoin.comAs you follow, MASK Network State Hackathon concluded successfully on February 20th. Prototype creation and development protocols participated and six projects took first place in their categories. More than 200 participants from many different countries such as China, India, USA, Nigeria, Japan, Singapore participated. The Hackathon is supported by MASK Network’s social ecosystem and Starkware’s core eco projects. Social wallet Civia won Gold, followed by Mind Network and W3Space. In the social, infrastructure and gaming categories, Noname.Monster, Matrix Multi chain alliance ToolKit and Degen Reborn emerged as winners. Most participating Web3 projects focused on decentralized identity and privacy.
The MASK price has dropped 6.5% since Feb. 21. According to crypto analyst Ekta Mourya, the token is currently in a short-term downtrend after losses of 15.3% since February 8.
MASK experienced a sharp decline in the first week of February. The recent downtrend is similar to the one MASK holders witnessed before February. MASK holders await Twitter’s launch of crypto payments as they anticipate the token will find wider utility and adoption on the social media platform. MASK competes with the Shiba-Inu-themed cryptocurrency Dogecoin to be accepted as payment on the social messaging protocol.
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