Weekly Cryptocurrency Market Analysis: Altcoins May Attract Buyers as the Markets Reach Oversold Regions

Aug 25, 2022 at 09:26 // Price

On August 17, cryptocurrencies experienced a meltdown as altcoins fell back to previous lows. The worst-performing cryptocurrencies risk further declines if current support levels are breached. Cryptocurrencies will continue another round of downtrend.

Ankr

The price of Ankr (ANKR) was in an uptrend but fell back below the 21-day line SMA. The bulls were rejected twice at the $0.058 resistance. The altcoin is bearish and trading between the moving average lines. If the bulls retest and break through the 21-day line SMA, the uptrend will resume. Conversely, a break below the 50-day line would mean a continuation of the downtrend.

Meanwhile, on August 14, the downtrend tested the 61.8% Fibonacci retracement level with a retreating candle. The retracement suggests that ANKR will fall to the level of 1.618 Fibonacci extension or $0.036. The price action shows that the altcoin retested the 1.618 Fibonacci extension and went back up. ANKR is above the 25% area of the daily stochastic. This indicates that the market has developed bullish momentum again. ANKR is the cryptocurrency with the lowest performance this week. It has the following characteristics:

Price: $0.04011

Market capitalization: $419,224,860

Trading volume: $79,507,494

7-day loss: 27.94%

Filecoin

Filecoin (FIL) is in a downtrend as the price breaks below the moving average lines. The cryptocurrency was previously in an uptrend, but was bumped off at the $11.37 high. Selling pressure is easing as the altcoin consolidates above the $6.05 support. Meanwhile, the August 3 downtrend has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that FIL will fall to the Fibonacci extension of $1.618 or $5.61.

Starting from the price action, Filecoin has fallen to a low of $6.28. The cryptocurrency is below the 20% area of the daily stochastic. This shows that the market has reached the oversold zone. The selling pressure has reached bearish exhaustion. The altcoin will go back to the upside. Altcoin is the cryptocurrency with the second worst performance this week. It has the following characteristics:

Price: $6.29

Market capitalization: $1,684,027,729

Trading volume: $185,880,549

7-day loss: 25.42%

STEPN

STEPN (GMT) has been in a fluctuation range since May 12. The cryptocurrency has fluctuated between $0.53 and $1.10. Since June, buyers have made desperate efforts to overcome the $1.10 resistance. However, on August 17, the bears broke through the moving average lines and reached the low of $0.76.

Since August 19, the cryptocurrency has consolidated above the $0.76 level. If the bears fall below the current support, GMT will regain the previous low at $0.53. The price movement has remained idle due to the presence of small indecisive doji candles. Meanwhile, the altcoin is at the 35 level of the Relative Strength Index for the 14 period, indicating that GMT is in a downtrend and approaching the oversold area of the market. However, GMT is the cryptocurrency with the third worst performance this week. It has the following characteristics:

Price: $0.7889

Market capitalization: $4,733,532,361

Trading volume: $191,771,792

7-day loss: 23.97%

Stacks

The price of Stack (STX) is in a downtrend and falls to the low of $0.39. The cryptocurrency was in an upward correction and rose to a high of $0.52. The bulls could not sustain the bullish momentum above the high of $0.50 as the market reaches the overbought zone. On August 17, the bears broke below the moving average lines as the altcoin reached the low of $0.39. The altcoin is consolidating above the $0.39 support.

The cryptocurrency is below the 20% area of the daily stochastics. This indicates that the market has reached the oversold zone. Further selling pressure is unlikely. It is the cryptocurrency with the fourth worst performance this week. It has the following characteristics:

Price: $0.3864

Market capitalization: $702,505,759

Trading volume: $8,905,299

7-day loss: 18.05%

Dogecoin

Dogecoin (DOGE) price is in a downtrend as the altcoin has fallen to a low of $0.067. Dogecoin has been trading in the bullish trend zone since July 20, when the cryptocurrency rose to a high of $0.0917 but was pushed back. Bulls failed to sustain the bullish momentum above the recent high as the altcoin fell below the moving average lines. The cryptocurrency is now in a downward correction as it resumes its consolidation.

DOGE is below the 20% area of the daily stochastic. This indicates that the market has reached bearish exhaustion. In other words, Dogecoin has reached the oversold region of the market. Buyers are attracted to the oversold region to push the price up. Dogecoin is the fifth worst performing cryptocurrency this week. It has the following characteristics:

Price: $0.06934

Market capitalization: $9,163,380,976

Trading volume: $334,862,266

7-day loss: 17.91%

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds. 

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