Considering the situation on traditional markets and global macroeconomic factors, the crypto market has witnessed a crash in the past two days. As a result, Ethereum, Dogecoin, and AAVE hit their multi-month/yearly lows on Jan.
Now, these cryptocurrencies need to restore their lost support levels as volume picks up to pave the way for a possible recovery window.
Ether (ETH)
Source: TradingView, ETH/USD
On its 4-hour chart, the alt king saw a breakout of the down channel pausing at its subsequent supply zone (rectangle, yellow). However, following the market-wide crash on January 21, ETH bulls were unable to step in and defend the key long-term support of $3000 (currently resistance).
Altcoins have seen multiple red candlesticks over the past two days after a large engulfing bar on Jan. 21. ETH recorded a loss of 29.63% (from Jan. 20 high) and touched 25-week low on Jan. 22. During this period, it also formed a falling wedge (yellow).
At press time, the alt is trading at $2,434.4. After retesting the oversold zone from the dual analysis panel, RSI tested the 58-point resistance on Jan. 20. After a broader sell-off, it saw a staggering 43-point drop until hitting the level. Lowest level in 22 months on January 22nd. Since then, it has rebounded but remains deeply in oversold territory. Besides, MACD confirmed the downtrend, but its histogram seems to be reaching equilibrium.
Dogecoin (DOGE)
Source: TradingView, DOGE/USD
DOGE saw an amazing 55.94% ROI (from January 10 low) until hitting a full month high on January 14. Since then, the bears have secured resistance. $0.1919 as the price dropped more than 41.18% until the meme-token hit a nine-month low on Jan. 22.
Now, as the bulls seem to defend the $0.1262 level, the immediate resistance is at $0.1456. Alt has marked an 11.4% recovery in the past day.
At press time, DOGE is trading at $0.1383. The RSI has been struggling to sustain above the 42 resistance for the past six days. Over the past day, it has seen a 19-point bounce from the oversold zone. Although OBV fell, it maintained the level that had supported previous higher prices. This reading leads to a rebound increase.
AAVE
Source: TradingView, AAVE/USD
Alt managed to reverse a decline from the key long-term support of $159 (now resistance) on Dec. 15. Thereafter, the alt saw a falling wedge (green) after hitting a six-week high on Dec.
The breakout resulted in an upward channel (white), but the bulls were unable to sustain the rally due to the broader sell-off. AAVE lost more than 44% (from Jan 15) until it hit a year low on Jan 22. Now the $159 mark becomes important for the bulls to conquer to get there. start a recovery phase.
At the time of writing, AAVE is trading at $152.8163. The RSI saw a descending expanding wedge as it oscillated around the oversold zone. Any close above the pattern will spur a possible bounce. Similar to DOGE, AAVE’s OBV has managed to maintain its support level. As such, it is not a description of hopeless affection for the bulls.