Analysis

Altcoin Market Is Losing Growth Momentum

783 days ago - Around 4 mins mins to read

Chiliz (CHZ) has been growing slowly since the end of May. It is currently approaching the first of two major resistance levels, a break above it could trigger a strong upward move.

Near Protocol (NEAR) is trying to reverse its previous all-time high and has broken out via a short-term corrective pattern.

While Terra (LUNA) hit an all-time high on October 4th, it broke a short-term ascending support line, questioning its uptrend.

CHZ

CHZ has been rising along with the ascending support line since May 23rd. As long as the support line is intact, the trend is still considered bullish.

The uptrend is also supported by technical indicators, in particular MACD and RSI.

The MACD is rising and is about to move into the positive zone. This indicator is generated by a combination of short-term and long-term moving averages (MAs) and this value means that the short-term MA is increasing faster than the long-term MA, but has not yet exceeded it.

On the other hand, the RSI has moved above the 50 line (green symbol). This means that the trend is bullish. When it happened on July 24th, the price of one rate rebounded to $ 0.46 before correcting.

The main resistance is at $ 0.465. It is created by the 0.382 fib retracement resistance and the September high. If CHZ can break above it, the price could go up significantly.

CHZ / USDT daily chart | Source: TradingView

The shorter six hour chart shows that CHZ is moving along a rising support line. This resulted in a high of $ 0.38 on October 7th.

However, the higher one was not maintained and the token produced a long upper wick (red symbol). This is seen as a sign of pressure to sell.

Additionally, it confirmed the $ 0.355 area as resistance as it opposed the CHZ on September 10th.

As such, there are still two levels of resistance to overcome before CHZ can start a strong uptrend.

CHZ / USDT 6-hour chart | Source: TradingView

Highlights

CHZ is moving along an ascending support line.
There is resistance at $ 0.355 and $ 0.465.

NEAR

NEAR has been falling since September 7th when it hit an all-time high of $ 11.88. Initially, the decline caused it to drop below the $ 7.30 zone. This is an important area as it was the all time high so far and can now serve as a support.

However, after deviating below this zone (red circle), NEAR rebounded and won it back. This is a bullish move and usually precedes sharp moves in the other direction.

Technical indicators offer a neutral outlook. The MACD is falling but is still in positive territory. As mentioned above, this means that while the short-term MA is still faster than the long-term MA, it is quickly losing its position.

RSI is currently on the 50 line and is also providing a neutral signal.

NEAR / USDT daily chart | Source: TradingView

The shorter-term six-hour chart supports the possibility of the token exploding.

NEAR broke out over a descending parallel channel and then confirmed this as support (green symbol).

Parallel channels often contain corrective movements. A breakout above the channel indicates that the correction is complete and NEAR is likely to resume its upward movement.

NEAR / USDT 6-hour chart | Source: TradingView

Highlights

NEAR hit an all-time high on September 9th.
It is trading above the support at $ 7.30.

LUNA

LUNA has been falling since it hit an all-time high of $ 49.54 on October 5th.

It may be trying to find support above the descending resistance line it broke out of earlier.

LUNA’s RSI and MACD are the same as NEAR. Both deliver neutral signals.

Daily LUNA / USDT chart | Source: TradingView

The short-term 2 hour chart casts doubt on LUNA’s ability to go higher.

First, the token broke below an ascending support line. Second, the move up that leads to the all-time high is a three-wave structure (highlighted). If this was the start of a long-term uptrend, the rally should have been a five-wave structure.

There is support at $ 36.75 and $ 33.75, these are the 0.5 and 0.618 fib retracement support levels. While they are likely to provide temporary support, a bullish reversal cannot be seen.