With weakness in the US and Asian markets, the crypto market is struggling to contain the selling. With Bitcoin falling below $63,000, the top tier-1 altcoin ‘s broke below multiple important supports.
This huge sales wave offers investors who have been sidelined the opportunity to accumulate at low levels. However, do altcoins have the potential to bounce back from this correction phase?
You can find more details in the price analysis below.
Ethereum
With the decline in the price of Bitcoin, the largest tier-1 altcoin Ethereum also experienced a large decline. The selling wave dealt a major blow to the psychological barrier of $3,000, warning of further correction.
Altcoins are cracking below the 50-day exponential moving average (EMA) level, warning of a decline towards the ascending support trend line. This correction could push Ethereum below the $3,000 level. In this context, it could cause it to retest the $2,800 level.
However, the possibility of a reversal of bullish dominance at the support trend line may increase. In this case, it is possible that a pullback could push the Ethereum price towards the $4,000 post-halving level.
Binance (BNB)
One of the tier-1 altcoins least affected in the bear market BinanceCoin (BNB) price follows a horizontal trend. The major correction in the overall market reduced the market price of BNB by 6% in two weeks.
On the 4-hour chart, BNB price trend is showing a decline below the 50- and 200-day exponential moving averages (EMA) and breaking a support trend line. This tier-1 altcoin is floating in a double bottom formation at $540 while holding above the psychological mark of $500.
According to an optimistic scenario, the uptrend could push BNB price higher towards the $650 level.
Solana (LEFT)
One of the best performing tier-1 altcoins in early 2024. solana, exhibits intense retraction in motion. The decline pushes the SOL token price below the psychological barrier of $150 and signals a decline to $100.
According to the Fibonacci retracement, the 50-day exponential moving average (EMA) breakdown rally is testing the 50% Fibonacci level at $135. A break below this level could jeopardize the $100 psychological mark and the 200-day EMA.
However, the presence of the $100 psychological mark suggests that there are several bullish catalysts to revive the uptrend. In this case, the reversal could present an excellent bottom-hunting opportunity for sideline traders.
Moreover, the highly anticipated post-halving rally is likely to push the SOL price to $250 within a few weeks.
Avalanche (AVAX)
Avalance With the network’s impressive growth before the crash, the altcoin rose to $60. However, the pullback from $60 gained additional bearish momentum as the market collapsed. In this context, it resulted in a breakout of $50.
The decline forms a falling channel formation on the daily chart and tests the 200D EMA. Despite the crash, AVAX price remains at a crucial stage with a chance to bounce back.
A bull cycle may start in the falling channel with strong support at $29 and dynamic support at the 200D EMA. It is possible for the bullish cycle to break the psychological level of $50. This could lead to the altcoin jumping to $75.
Cardano (ADA)
Almost reaching the psychological limit of $1 ISLAND The price experienced a rapid decline and entered a bear cycle. Similar to the rest of the Tier-1 altcoins, the market-wide correction intensified the pullback for Cardano, leading it to drop below $0.50.
The massive overall supply is breaking the important 50 and 200D EMA and the long-standing support trend line. While ADA price is trading below $0.50, buyers are trying to gain support from the $0.46 demand zone.
If the buyers manage a reversal, a bull run will reclaim the $0.50 level and potentially test the $0.67 mark.
Conclusion for Tier-1 Altcoins
Since the overall market is under correction, some tier-1 altcoins are exhibiting immediate reversal opportunities. However, some have not yet approached the next significant demand level to find a solid return base. However, the ongoing conflict is creating correction waves in global markets, providing an opportunity to buy dips.
You can access current market movements here.
