Date: Thu, Jan 09, 2025, 04:07 AM GMT
The cryptocurrency market has experienced turbulence in the past 72 hours, with Bitcoin (BTC) taking a significant hit, dropping from $102K to $94K. This sharp decline has triggered substantial liquidations across the market, leading to a domino effect on altcoins.
Among the impacted tokens, Virtuals Protocol (VIRTUAL), Stacks (STX), and Celestia (TIA) have all approached critical support levels, signaling potential turning points.
Source: Coinmarketcap
Virtuals Protocol (VIRTUAL)
$VIRTUAL is currently consolidating within a descending triangle pattern, reflecting a persistent downtrend since its all-time high (ATH) of $5.14 on Jan 2. The recent dip saw VIRTUAL plummet from $4.43 to $3.36, bringing it into a key support zone between $3.18 and $3.42. This zone, previously a resistance level, has now flipped into a robust support.
Virtuals Protocol (VIRTUAL) 4H Chart/ Coinsprobe (Source: Tradingview)
Technical Indicators: The MACD shows a bearish crossover, but histogram bars are shortening, suggesting declining selling pressure.
The RSI has dropped near the oversold region, indicating a potential reversal is on the horizon.
If VIRTUAL holds the lower boundary of the descending triangle and bounces, it could spark a short-term rally toward the triangle's upper resistance. However, a breakdown below this zone may lead to a deeper correction to $2.84.
Stacks (STX)
Stacks (STX) is consolidating within a falling wedge pattern, a bullish structure despite the overall downtrend that started after its peak of $3.02 on Dec 6. The recent drop pushed $STX from $1.85 to its current price of $1.52, positioning it within the crucial support zone between $1.44 and $1.56. Historically, this zone has been a key reversal level.
Stacks (STX) 4H Chart/ Coinsprobe (Source: Tradingview)
Technical Indicators: The MACD shows signs of flattening, with potential for a bullish crossover if momentum shifts.
The RSI hovers just above the oversold area, signaling the likelihood of a rebound.
A successful defense of this support zone could push STX toward the wedge resistance level, paving the way for a potential breakout.
Celestia (TIA)
Celestia (TIA) saw its price tumble from $5.68 to $4.56, bringing it into a critical support zone between $4.25 and $4.74. This zone has historically served as a reliable floor for price reversals.
Celestia (TIA) 4H Chart/ Coinsprobe (Source: Tradingview)
Technical Indicators: The MACD indicates bearish momentum is waning, suggesting a possible bullish turnaround.
The RSI is nearing oversold conditions, reinforcing the potential for a recovery.
If $TIA holds this support, it could stage a reversal toward its previous resistance at $5.68. A failure to hold, however, might result in a retest of the $4.00 level.
What’s Ahead?
As these three altcoins hover around key support levels, their immediate future largely depends on Bitcoin’s performance. BTC is trading at a critical support level of $94K, with both the MACD and RSI indicating that a bounce may be imminent.
Bitcoin (BTC) 4H Chart/ Coinsprobe (Source: Tradingview)
Should BTC recover from this support, it could lead to a broader market rally, lifting altcoins like VIRTUAL, STX, and TIA in the process.
However, if BTC fails to hold its support, these altcoins may face further downward pressure. Traders are advised to monitor BTC’s movements closely, as well as volume and momentum indicators for these altcoins.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
