Weekly market recap(from May 4th to May 10th)
Last week, after the interest rate hike decision, the market accelerated decline again after a one-day honeymoon. Concerns about the economic system made the positive tone of interest rate hikes useless. After dumping below the previous low, the price continued its downward move without hesitation, reaching the support level of July 2021.
With the sharp decline in UST, it is unknown whether it will cause other systemic risks at such low price level. A lot of cryptocurrencies are at 9 months lows and are likely to continue to fall. You know, after badly injured, you’re still in pain for a long time, even if not bleed.
In our last report, we thought that a downtrend was more likely than an uptrend. But such strength of this decline was unexpected. If you’ve been following our recap, you’ll see that over the past month, the bulls have missed out on the uptrend channel several times and the support level have been retested for a long time. The lack of confidence in the bulls is evident, which may also have created the energy for this dump. Unfortunately, the bearish channel has opened again and the slope is steepening. To be sure, the bulls are unlikely to recover directly under the circumstances.
Conclusion:Mostly falling. Five consecutive red candles are enough to deduce this conclusion. Although the current price level is at last year’s support level, it is also the support level for the entire second ATH. However, the bearish power has not weakened. The current price has rebounded, but even if the bulls counterattack, they need to wait for the bears to reduce. We simultaneously lowered support and resistance levels. Support is set as 29700, which is a strong support level, but with the current momentum, it should be tested multiple times. We set resistance as 35000, which is not only the previous low, but also the bearish confirmation level. Of course, there is a certain amount of selling pressure on the lower rail of the channel.
ETH, like BTC, has steepened the slope after opening a bearish channel. The price needs to get back above the lower rail of the channel to bring the market back to rationality. Let’s take a look at something different from BTC. The current price of ETH is still some distance from the July support level. The current price is near the January low, which has some support here.
Conclusion: Mostly falling. Our conclusion is based on the fact that the strength of the bears did not decay in the last week. Above we mentioned support at 2300, which was the half position of the pin on Jan.24 and was tested on Feb.24. The resistance level is at 2500, which is also the confirmation point of the bears. It is difficult for the price to reach this level in a short time.
The performance on the large scale is bad. The difference is that SOL is continuing its previous performance. From the graph, the lower rail of SOL’s bearish channel is effective for a long time, and the slope has always maintained the same level. This reflects that for other cryptocurrencies, such as BTC,ETH, although the slope steepened in the last week, it does not mean that off-track will bring strong bullish power. It’s more of a compensation for the lack of early decline. Going back to SOL, we repeatedly mentioned in our February reports how important the level(68) is . In this decline, the level was easily broken. The decline will continue for a long time.
Conclusion: Mostly falling. For SOL, the next level of support is at 44. Maybe this level is far from the current level, but not holding 68 is disastrous. More bearish power will be generated while bullish confidence is hard to build. The resistance level is at 75, which is a bearish confirmation level.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.