Bitcoin hit a new 52-week low that resulted in many tokens plunging in value.
After the collapse of FTX last week, the overall market seems weak. It has been unable to recover after the deep sell-off. This is why it is important we analyze the tokens that are showing signs of weakness and may fall further.
With Bitcoin dropping to the $16,000 level, many tokens have dropped to crucial support levels. Is it time to buy or wait for a further drop?
In our previous analysis, we ascertained if the support at $7.5 is taken out, the price will test the last standing support at $6.2.
Therefore, it would be beneficial for traders to stay away from LINK until it is able to reclaim the resistance at $6.5.
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Looking at the chart above, HIVE can clearly be seen as one of the weaker tokens in the list as it was trading just above its 52-week low. After the sell-off last week, HIVE crashed by almost 50% as it was one of the worst-hit tokens, and it has been unable to recover from the lows.
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In our previous analysis, we had anticipated DOT to hit a new 52-week low once it broke the support at $6. This was seen last week during the sell-off which led to DOT hitting a new low at $5.32.
At the time of writing, DOT was on the verge of breaking a supporting trendline, following which a fall could be seen. Therefore, DOT must break the resistance at $6 to be considered a potential buy. If the resistance is reclaimed, expect the price to approach the supply zone at $6.8.
BAT has not shown any signs of a reversal yet, and a 52-week low seems imminent this week. Until the price is able to cross the resistance at $0.26, the bulls are not likely to be able to rally the price. Traders can expect the price to recover to $0.28 if the resistance is reclaimed, however, at the time of writing, it does not seem likely.
FLUX is another token that has plummeted by 50% in the past week. It is important for traders to stay cautious as such weak tokens can drop sharply at any point.
Traders can expect the price to partially recover to $0.6, however, they must maintain caution as FLUX is a very volatile token!
APT seems to be recovering after the steep fall last week which is a great sign for traders. However, traders should wait for APT to cross the resistance at $5.5 before taking a long position.
If the resistance is taken out, traders can expect the price to rise to $6.5.
A quick recap of all the coins:
- LINK is about to break crucial support.
- HIVE was unable to recover after the sell-off.
- DOT can hit a new low soon.
- Avoid long positions in BAT until the resistance is flipped.
- FLUX is consolidating.
- APT is recovering after the sell-off.