EOS faced an uphill struggle to reclaim the $7.76-level from the market’s sellers. MATIC could see additional dips towards $1.49 or even $1.2, before buyers step in. Finally, SUSHI was projected to break south from its rising wedge on the charts.
EOS was rejected at the $7.76-resistance level and the 200-SMA (green) and saw southbound action on its 4-hour chart. The region between $5.7-6.2 was of importance as it clashed with the 50-SMA (yellow) and 20-SMA (red). Conceding this zone to the bears would likely cause an immediate 20% retracement to $4.95. Moreover, a break below $3.56 could even lead to a prolonged bear market.
A bearish crossover on the MACD would see it fall below equilibrium over the next few sessions. The movement registered by its histogram suggested that EOS’s jump from $3.56 to $7.76 lacked any conviction to trend in an upwards direction. With the OBV also maintaining a downwards trajectory, the dearth of buying pressure worked against a move above the 200-SMA (green) over the short term.
With a hike from $0.86 to $2.40 over the last five days, MATIC has become somewhat of a crypto-darling for investors looking to make steady profits even in a turbulent broader market. News surrounding MATIC’s network activity and more recently, Mark Cuban’s investment in the project, has certainly turned more eyes towards the ‘Ethereum Killer.’ Its year-to-date gains stood at an absorbing 10,000%.
Its movement, however, was not unresponsive to another dip in the broader market. On the 4-hour chart, MATIC broke below a sturdy support zone around $2 and moved south, at the time of writing. Another strong area of defensive lay between $1.49-1.79 as it also coincided with the 50-SMA.
In case of a further breakdown, buyers could step up between $1.2-1.26. The Awesome Oscillator pictured a series of red bars as selling pressure was building up. Finally, the RSI formed lower highs and confirmed MATIC’s price action.
A rising wedge pattern on SUSHI’s 4-hour chart presented two scenarios going forward. A break above $13.7-14.6 could open the doors for a 20% hike at $17.25. Conversely, a fall below $10.5 could result in a sharper sell-off. With BTC struggling to break above $42K, bearish sentiment can be expected to remain persistent over the next few days, something that would impact SUSHI as well.
The MACD noted a bearish crossover and would likely remain below the half-line till buyers return to the market. A breakdown could be countered at the $6.48-support. On the plus side, Chaikin Money Flow highlighted healthy capital inflows towards the crypto-asset.