On their 4-hour charts, Solana, Tezos, and MANA all had oversold readings when compared to the rest of the market. According to this, they lost important support levels and turned them into immediate resistance.
SOL lost almost 44% from 20 January to 24 January. It hit a five-month low on 24 January. Because of that, it’s gone up more than 50% since then. In this phase, it made a channel on its 4-hour chart that was going up.
Since then, the alt has turned down to test its 50 EMA (red) and then turned the $92 mark from a support to a resistance. The bulls have been able to keep the $83 level in place for more than five months now. So, if you keep going back, you should be able to find places to test near that level.
This is what SOL was worth at the time. After losing its midline support, the bearish RSI tried to break through the 43-point barrier many times, but it didn’t show any signs of life. People thought the market would have to go back to the oversold area before it could start to go up. Also, the -DI (of the DMI) looked north, which backs up SOL’s short-term bearishness.
Bulls took over as XTZ fell toward the $2.7 zone. The alt bounced back and hit important price points.
When the altcoin was at its lowest point in six months on January 24, it saw an 81.2 percent return. At the same time, it formed an ascending channel (yellow). Then, on February 10, it hit the $4.5 mark. Since then, the general sell-off has helped the up-channel breakdown as XTZ dropped below the $3.4 mark (immediate resistance). There would be a stop at $3.2.
If you want to buy or sell XTZ now, it costs $3.424. Over the last four days, the RSI fell 27 points from its midline and went through the oversold area many times. It didn’t look like it was going to come back. On top of that, the AO confirmed the bearish strength by marking lower high points. But the OBV kept the support that had kept prices higher in the past, which meant that the buyers had not completely lost control.
If you bought something on 22 January, the alt saw a 107.4% return on investment until 9 February. Then, MANA saw a break in the up-channel (yellow) and tried to break through the $2.7 mark.
Since then, the alt has bounced back after forming a short-term demand zone (rectangle). As a result, it lost 21.2 percent in just the last four days. The 20 SMA (red) is about to cross the 50 SMA (grey). Now, if the price stays below the demand zone for a long time, it could lead to even more drops.
This is what MANA was worth right now. It was below its 20-50-200 SMA at $2,71. As a result, its RSI reached the oversold zone. There might be a change in direction if prices close below 30.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.