While the month of April started out bullish for the cryptocurrency market, the sharp decline that started on April 14 caused many cryptocurrencies to lose all their gains and even post negative increase rates.
April saw a turbulent cryptocurrency market as prices showed extreme volatility, and bearish crypto prices were seen towards the end of the month. These four cryptocurrencies have been hit particularly hard, and their formations indicate that more downsides are expected as the new month begins.
Polygon price (MATIC) is losing the crucial support
Polygon (MATIC) price collapsed from the ascending support line on April 19th. The line had previously formed the slope of the increase since the beginning of the year.
As a result, the breakdown from this indicates that the upward movement has completed, and a new movement on the downside has begun.
Moreover, the price lost the critical Fibonacci level and horizontal support at $1.05. According to the principle of Fibonacci retracement levels, after a significant price change in one direction, the price is expected to partially retract or return to the previous price level before resuming in its original direction, and these levels can also be used to determine the top for future upward movements.
After the crash, the cryptocurrency verified the $1.05 level as resistance (red icon). This supports the possibility of expecting more declines before the price reaches the bottom.
Due to the lack of support below the current price, MATIC could drop to a yearly low of $0.74. Closing above $1.05 will render this bearish prediction invalid. In this case, MATIC could reach the previous ascending support line at $1.20.
However, the bearish momentum currently indicates that more downside can be expected.
PancakeSwap (CAKE) The price is falling to a new yearly low
CAKE price has been declining since the breakout from the ascending support line on April 19th. The drop was fast, allowing for no trace of recoil.
CAKE token price reached a fresh yearly low of $2.57 and risks a further breakdown from the $2.55 horizontal support area. If it collapses, it will fall below its 2022 low.
Since there is no support below the current price, it could cause a sharp drop to $0.70.
However, if the cryptocurrency rebounds, it could rally towards the $3.20 area, which is now expected to offer resistance.
Optimistic (OP) price risk breakdown from the bearish pattern
OP price has been falling below the descending resistance line since the beginning of February. Along with the line, the price is also interacting with the $2.0 horizontal support area.
When combined together, they create a descending triangle, which is considered a bearish pattern. This means that the pattern causes crashes most of the time.
In the event of a breakdown, OP price could drop to the next nearest support at $1.30. Support is created by a horizontal support area and an ascending support line.
On the other hand, if the bearish cryptocurrency can rebound at the $2.0 area, an increase in the descending resistance line at $2.25 is possible.
Chart price (GRT) declined after the corrective structure
GRT price started an upward movement on March 10th. However, it failed to sustain it and reversed course on 21 April. The decline caused a breakdown from the ascending support line, which indicates the completion of the upward move.
Moreover, the previous increase is very similar to the corrective ABC structure. Using the Elliott Wave theory, technical analysts examine long-term price patterns and investor psychology that recur to determine trend direction.
Since the correction is going up, it means that the trend is down.
If the decline continues, the bearish cryptocurrency could drop to the next nearest support area at $0.095. Restoring the ascending support line will invalidate these bearish expectations and may lead to an increase towards $0.22.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.