The cryptocurrency spectrum saw a colossal selling wave over the previous 48 hours. BTC lost approximately 10% to $39.8K from $43.3K, and Tezos and Solana saw similar drops.
Solana maintained a short-term downside since the pessimistic $136 retest. Tezos and EOS also exhibited bearishness on their respective shorter time-frames. However, days following massive drops sometimes offer ‘buy’ opportunities.
Solana has maintained downtrends over the previous week and the alt traded around the $100 value area at this publication. However, the $98 – $100 range has served as SOL’s support in the past. The alt might rebound from this zone.
The Relative Strength index stood at 31.25 and displayed massive bearish strength. The on-balance volume saw downtrends over the last ten days, showing selling momentum exceeded buying at that time frame. Meanwhile, SOL may bounce toward the $108. Nevertheless, massive selling pressure can emerge at the $105 – 108 territory.
EOS also reflected massive bearishness over the recent days as the overall market saw heavy selling activity. The AO (Awesome Oscillator) stayed below the zero line, whereas the A/R line moved sideways over the past few days. That might hint at a rebound toward the $2.3 level.
The Fibo extension zones plotted according to the alt downward move to $2.34 from $3.06 displayed the 61.8% and 27.2% extensions at $1.9 and $2.145, respectively. A session close below the $2.15 mark would likely trigger further lows, taking EOS towards $1.9.
The Relative Strength Index and the price action on the 1hr chart indicated a bearish divergence. Also, the CVD jumped to the positive region, reflecting increased buying pressure than the selling momentum.
Meanwhile, the $3.1 – $3.17 region may pose a hurdle to XTZ’s bounce. The area at $2.84 – $2.9may offer support amid southward movements. Therefore, these regions may present buying and selling opportunities in the coming few days.
However, the alt market will react depending on BTC’s actions. Bitcoin attempts recovery after the slump to the $39K value area. The bellwether crypto traded around $40,257.66 at this publication. Meanwhile, decisive moves past $41K may catalyze near-term reversals in the altcoin market.