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NEW DELHI (CoinChapter.com) — The cryptocurrency market remains fragile in the aftermath of the FTX collapse. SOL price continued its freefall, while ETH was also in the red. On the other hand, LINK bulls struggled to keep the token in the green.
Several crypto projects, even nominally associated with FTX, have been suffering. Moreover, businesses outside the crypto-verse have felt the shockwave of the exchange’s implosion.
Investor sentiment continues to be bearish as rumors continue to swirl, forcing traders to dump their tokens. Additionally, the negative sentiment might push investors to remain cautious, resulting in a decline in fund inflows to the market.
Ethereum native token, ETH, saw its price drop by more than 10% between Nov 20’s high ($1,225) and Nov 21’s low ($1,100). The drop resulted in Ether’s price falling close to levels last seen on Nov 9.
If the Ethereum (ETH) price continues falling, the token would likely fall to test support near $1,080. Finally, a marketwide sell-off might result in the ETH needling below immediate support and falling to $1,0254 before recovering.
The relative strength index for ETH remains neutral, with a value of 34.34 on the daily charts. However, the RSI trendline is sloping downwards and might soon become oversold. Traders often consider oversold RSI levels as a buy indicator on account of oversold RSI levels preluding a bullish trend reversal.
Buyers might enter the market once the RSI becomes oversold, which would help push Ethereum (ETH) price to resistance near $1,160. Moving and holding above immediate resistance might see the Ethereum token target resistance from its 20-day EMA (red wave) near $1,270 before retreating.
The Chainlink token has been steadily dropping since Nov 8, with a few bouts of upswing thrown in the mix. Chainlink (LINK) price fell more than 6% on Nov 20. Meanwhile, the crypto token swung 4.3% between intraday low ($5.6) and high ($5.85) levels on Nov 21.
The long wicks on both ends of the thin daily candle of Nov 21 highlight the indecisiveness of the market. As such, if the bears continue selling, LINK price might fall to test support near $5.55. Moreover, needling below immediate support could force LINK price to support near $5.19 before the token recovers.
Meanwhile, the relative strength index remained neutral for the Chainlink token, clocking at 37.89 on the daily timeframe. However, the RSI trendline is skirting quite close to the oversold threshold. An oversold RSI often preludes a trend reversal favoring the bulls.
If buyers move in, Chainlink (LINK) price might jump to challenge resistance near $6.02. A break and hold above immediate resistance would likely help the Chainlink token target resistance from its 20-day EMA (red wave) near $6.6 before downside corrections pare gains.
Solana network and its native token SOL have suffered the most from the aftermath of the FTX collapse. Solana (SOL) price has fallen nearly 69% between Nov 6’s high of $37.1 and Nov 21’s intraday low of $11.7.
Furthermore, the token painted its sixth consecutive red candle on Nov 21, highlighting the intense selling pressure SOL is facing. If the downtrend continues, the Solana token might fall to test support near $10.9.
A marketwide sell-off might see Solana (SOL) price drop to test support near $9.6 before the token starts recovering.
Meanwhile, the relative strength index for SOL has been oversold since Nov 11, clocking at 26.81 on the daily timeframe. Under normal conditions, oversold RSI levels often bring buyers to the market since the indicator often preludes a bullish trend reversal.
If SOL bulls do enter the market, they would need to push SOL above immediate resistance near $12.9 to start an uptrend. After consolidating above immediate resistance, the Solana token would likely challenge resistance near $14.7, before bears start selling.
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A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.
Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.
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