Altcoins
4 Altcoins to Watch for a Drop in June 2024
It is no longer news that the cryptocurrency market saw a surge in trading activity in May. This has propelled the values of many altcoins to new highs. Over the past 30 days, the global cryptocurrency market capitalization has increased by 17%.
However, as June dawns, some altcoins are on the verge of decline. Crypto assets such as Cardano (ADA), Bitcoin Cash (BCH), Axie Infinity (AXS), And The sandbox (SAND) have experienced a rise in bearish sentiment, putting them at risk of losing some of their short-term gains.
Cardano (ADA) Bears Have Leverage
At the time of writing, Cardano was trading at $0.44. Its price peaked at $0.50 on May 21 and declined by 12%.
Its Awesome Oscillator (AO) confirmed the current ADA distribution trend as the indicator was returning red histogram bars at press time. This indicator measures market dynamics and identifies an asset’s current trend and potential price reversal points.
When an asset’s AO shows red bars, its short-term momentum is declining faster than its long-term momentum. Red bars generally suggest increasing selling pressure and hint at the possibility of a price decline.
As a reminder, ADA’s AO has only returned red bars since April 1, suggesting that the bearish bias has dominated the coin’s market for over 60 days.
Learn more: How to Buy Cardano (ADA) and Everything You Need to Know
Cardano analysis. Source: Trading View
If selling pressure continues to grow, ADA price could fall to $0.40, a price level it last traded at in December 2023.
Bitcoin Cash (BCH) bulls take a back seat
The price of Bitcoin Cash (BCH) has fallen by more than 10% in the last ten days. This is due to an increase in capital flight from the coin’s market, which was confirmed by readings of its Chaikin Money Flow (CMF).
This indicator measures money flows into and out of the BCH market. Traders use it to gain insight into the strength and direction of a trend. It signals market strength when its value is positive and above the zero line. This suggests that buying pressure is high and money is flowing into the market.
Conversely, a negative CMF value shows that more people are selling than buying, a warning sign of falling prices.
The altcoin CMF has been positioned below the zero line since May 23. At the time of writing, the indicator value was -0.06.
Additionally, the points that make up BCH’s Parabolic Stop and Reverse (SAR) indicator confirmed increasing selling pressure, especially over the past few days. This indicator also tracks the evolution of the price of an asset.
Learn more: How to Buy Bitcoin Cash (BCH) and Everything You Need to Know
When its points are above the price of the asset, the market is said to be in decline due to a sharp increase in selling activities. If this distribution trend of BCH continues, its next price could be $459.4.
Axie Infinity (AXS) Eyes More Losses
The price of AXS, the governance token that powers leaders play to win gaming platform Axie Infinity, rose 11% last month. However, with its price falling below its 20-day exponential moving average (EMA), signaling a spike in selling pressure, AXS could lose some of these gains in the coming weeks.
The 20-day EMA is important because it helps track the average price of an asset over the last 20 days. When an asset’s price falls below this key moving average, it signals a shift from buying to selling. This is a bearish signal and traders interpret it as a sign of a trend reversal from an uptrend to a downtrend.
Learn more: Axie Infinity (AXS) explained for beginners
If AXS’s selling pressure continues to skyrocket, its price could fall to $7.3 and then to the long-term support level of $6.76 if profit-taking continues unabated.
The Sandbox (SAND) Sees Growing Sales
The last of the altcoins is Sandbox (SAND); SAND’s current set of Moving Average Convergence/Divergence (MACD) indicator shows its short-term average falling below its long-term average. This is a bearish signal that market participants interpret as a signal to enter short positions and exit long positions.
This indicator is used to identify changes in the trend, momentum and strength of an asset. As observed in the current SAND setup, when the MACD line (blue) crosses below the signal line (orange), traders are informed that it may be a good time to sell as pressure at the decline in the price of the asset increases.
Learn more: Top 10 metaverse platforms What to watch in 2023
If SAND sales accelerate, SAND could fall below $0.4 to trade at $0.36.
Disclaimer
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