The crypto market has had a bloody week of trading. All crypto currencies collapsed massively in the wake of the significant Bitcoin weakness and can only break away from their lows more clearly in the last hours of trading.
The market as a whole came under significant pressure again in the last three trading days. The sale of the crypto key currency Bitcoin (BTC) caused a real collapse in many Altcoins. The corrections brought many altcoins back to their breakout levels at the beginning of the year for a short time. This correction is terrifying on the first impression, but in the medium and long term this development is quite healthy. The volatility of the crypto market was and is not for the faint of heart.
Patient investors were able to enter at attractive price levels this weekend and stabilized the market for the time being. It remains to be seen whether the market as a whole has bottomed out or whether the seller side takes action again. As always, it is important to look closely at the Bitcoin price development and the dominance of the crypto reserve currency. At least in the short term, another such strong sell-off on the crypto market is not to be expected. This view is further underpinned by the strength of Bitcoin on Monday, May 24th. Investors should prepare for a volatile sideways phase in the coming weeks; only rarely do such sales on the market as a whole lead directly to a new sustainable price rally.
Best price development among the top 10 Altcoins: Internet Computer (ICP)
Price analysis based on the value pair ICP / USD on Binance
After three years of development, the Swiss project of the “Internet Computer” christened Altcoin ICP was listed on Binance on May 11th. The aim of this project is to offer a decentralized solution for the cloud storage of data based on the blockchain. The aim is to create an alternative option to Amazon’s AWS and Google Cloud Servers in order to reduce the dependency on large corporations and enable its users to have a say.
Bullish variant (ICP)
The ICP course initially came under significant pressure in the days following its initial listing. Investors who invested in the ICO or participated in the Airdrop in 2018 initially took profits after waiting for years and pushed the price significantly south. The ICP price initially fell significantly to a low of USD 91 before stabilizing. Starting from the all-time low on May 19, the ICP price was able to pull itself out of the loop in a remarkable way in the last turbulent trading days. Despite yesterday’s bloodbath on the market as a whole, the ICP rate stabilized around USD 120 and can also gain around 30 percentage points in value in the last hours of trading. This means that the ICP price in the 4-hour chart, which is used due to the low chart history, can currently stabilize above the cross support of the 23 Fibonacci retracement and EMA20 (red).
If the overall market shows its bullish side in the coming trading days, as expected, an increase in the cross resistance from EMA50 (orange), Supertrend and 38er Fibonacci retracement can be expected. This range can be found at $ 189. If this multiple upward resistance is broken, a breakthrough to the horizontal resist at USD 223 is initially conceivable. The 50s Fibonacci retracement of the current trend movement also runs here. If this price mark is also overcome, an initial directional decision will be made in the area of USD 250. This is where the 61 Fibonacci retracement and the first important resistance level run. Should the bulls manage to break through this strong resistance, price targets will activate at USD 293 (78 Fibonacci retracement) and the short-term maximum price target at USD 348. In the medium term, higher course targets are certainly conceivable. In particular, the range between USD 418 and USD 447 should be mentioned here.
Bearish variant (ICP)
If the ICP price does not manage to attack the resistance at USD 223 and falls again dynamically below the EMA20 (red), the horizontal support line at USD 120 should be approached again. Since new ICP tokens are released every month, it must be taken into account that the supply of circulating ICP tokens will gradually increase. If the need or interest in the intercomputer cannot compensate for the number of new coins, a further fall back to the low of USD 91 cannot be ruled out. If this support level is consistently undercut, price targets of USD 55 and USD 40 move into the focus of investors.
In particular, a persistent weakness in the price of Bitcoin could also result in significantly lower prices at ICP. The ICP could even correct a maximum of up to the 161 Fibonacci extension at USD 9.50. At the moment, this very bearish variant tends to be unlikely. The fact that ICP did not correct below USD 120 despite yesterday’s slaughter is to be seen as a sign of strength. The future will show to what extent this relative strength will be sufficient to survive a possible Bitcoin price of USD 20,000 without damage. It is therefore important for investors to closely monitor how the ICP price behaves at the price levels mentioned below USD 91.
Indicators (ICP)
The RSI as well as the MACD indicator currently have long signals active in the 4-hour chart. However, since the chart history is only 13 days, the informative value is limited. Only the coming trading weeks will provide more information and greater interpretive power.
Worst price development among the top 10 altcoins: Polkadot (DOT)
Price analysis based on the value pair DOT / USD on Binance
The Polkadot course was hit hard this week. After Polkadot did not manage to break out of the sideways phase upwards, the DOT price collapsed significantly and corrected from the all-time high of 49.80 USD by 73 percentage points. Polkadot fell to a new multi-month low at $ 13.60 before the current countermovement kicked in. Within the last 18 hours, the DOT rose to $ 21.50. While this recovery is significant, it should be a real test in the $ 23.20 area.
Bullish variant (polkadot)
Yesterday’s price slump left lasting marks. Polkadot is currently trading well below its trading range of the last two months. Although the bulls were able to avert a total crash in the area of the development lows from the end of January 2021, as long as the DOT price cannot rise back above the strong resistance area of EMA200 (blue) and MA200 (green), the horizontal support is restarted at 17 .88 USD not off the table. If Polkadot can recapture the first major hurdle in the form of the 23 Fibonacci retracement at USD 22.13, an initial litmus test will take place between USD 23.17 and USD 25.06. If the bulls manage to break through this resistance area, the 38 Fibonacci retracement at USD 27.42 will move into the focus of investors. The 38 Fibonacci retracement is often the first important price target after such a sell-off. Should the DOT price also dynamically overcome this resistance, the next target will be activated in the form of the underside of the sideways trend channel. A re-entry into the green zone is definitely to be seen as bullish.
As a result, Polkadot should rise to $ 31.38. The 50s Fibonacci retracement and the EMA20 (red) run here. An outbreak is therefore not to be expected at the first attempt. Only when Bitcoin also rises back towards USD 42,000 and beyond, Polkadot could also target its next price target at USD 35.34. Increased resistance can be expected once again in the USD 35.97 area. This is where the 61’s Fibonacci retracement can be found. After such a sell-off, this price level often represents the short-term maximum price target. Should Bitcoin continue to march towards USD 50,000, investors will also focus on new price targets for Polkadot at USD 39.70 and USD 42.30. For the time being, these resistance levels represent the maximum price targets on the upside. Should the overall market, contrary to expectations, recover very quickly, the maximum price target would also be a march through to the old all-time high of USD 46.77. A breakthrough above this price level is not to be seen as likely in the coming weeks.
Bearish variant (polkadot)
If, on the other hand, Polkadot does not manage to overcome at least the 23rd Fibonacci retracement and rebound dynamically downwards in the gray resistance zone at the latest, the horizontal support at USD 19.25 comes into focus again. A relapse to USD 17.88 would also be conceivable at any time. If the bears break this support again, Polkadot should correct back to at least $ 15.42. If this chart level does not stop either, a retest of yesterday’s low at USD 13.58 is likely.
If this price mark is also dynamically undershot, and the DOT rate even falls back below USD 13.12 as a result, a correction widening to USD 11.76 or USD 10.66 is likely. If the bulls cannot stabilize the DOT rate here either, a relapse into the purple support area between USD 7.89 and USD 7.19 cannot be ruled out. If the weakness in the overall market continues to expand and Bitcoin falls back towards USD 20,000, a maximum correction of the DOT rate of up to USD 4.59 should be planned. From the current perspective, this price mark represents the maximum bearish price target for Polkadot.
Indicators (polkadot)
Both the RSI and the MACD indicator continue to show sell signals. However, both indicators are clearly oversold on a daily basis. As long as the RSI cannot move back into the neutral zone, the bears remain in control.
Top 10 stability
The drop in the Bitcoin rate to 30,000 USD in the meantime did not leave the top 10 Altcoins unaffected. All of the top 10 coins lost 30 percent or more of their value. The newcomer to the top 10, the Internet Computer (ICP), got through this trading week relatively well. ICP itself only lost a good 30 percent and can thus assert itself a bit better than its competition. The list of weekly losers is led by Polkadot (DOT) with a price slide of 52 percentage points.
The Binance Coin (BNB) as well as Bitcoin Cash (BCH) and Litecoin (LTC) also fell by 47 percent. The clear price drops in all of the top 10 Altcoins also messed up the ranking. Cardano (ADA) can continue to make up ground and displace BNB from third place. Due to the direct entry of ICP in 8th place, Bitcoin Cash (BCH) and Litecoin (LTC) each slide down by one rank. As a result, Uniswap (UNI) falls out of the top 10 and is currently in eleventh place.
Winner and Loser of the Week
The overall market can look back on a bloody week. All of the top 100 altcoins had to cope with, in some cases, considerable price drops. Driven by the weakness in Bitcoin, there was also a real sell-off on the altcoin market. Only two top 100 Altcoins ended the week with a slight price increase. The Fei Protocol (FEI) and Helium (HNT) saved a price increase of around two percentage points. The long list of weekly losers is led by Terra (LUNA) with a price discount of 60 percentage points. The exchange tokens OKB (OKB) and NEXO (NEXO) as well as the Meme Coin Shiba Inu also lose more than 52 percent of their value in a weekly comparison.
More than 40 percent of the top 100 altcoins show a price drop of more than 40 percentage points. On the positive side, however, all Altcoins were able to break away from their weekly lows on yesterday, Sunday, May 23, and in some cases rose by 30 to 50 percentage points in the last 18 hours of trading. It is therefore obvious that yesterday’s surrender was used extensively for new entrants and that no new lows for Altcoins are to be expected in the short term.
Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are only an assessment of the analyst.
The chart images were created using TradingView created.
USD / EUR exchange rate at the time of going to press: 0.83 euros.