It seems that we have entered a correction phase in the cryptocurrency market after weeks of consecutive rises.
Bitcoin recorded its first bearish weekly candle in eight weeks, with a decline of 5.80%. Most altcoins have followed suit.
This pullback is a natural and expected correction and can present a lot of trading and entry opportunities. To benefit from the rising wave witnessed by many altcoins.
Below we will take a look at the most important technical levels and trading opportunities for 4 cryptocurrencies that have risen strongly in the past weeks and are now in the correction phase.
1. Solana (SOL)
The performance of this currency was the best among the 20 largest cryptocurrencies, with a 600% rise since the beginning of this year.
The strong bullish wave began in mid-October, which was inside the price channel shown in the attached daily chart.
Solana’s price is now trading around the $70 level at the lower border of the ascending price channel. It is difficult to say whether it will bounce off this support or not.
But if the downward correction movement continues, the best entry areas are the 38.2 and 50% Fibonacci retracement levels at prices of $57 and $50, respectively.
2. Render (RNDR)
This cryptocurrency, which is linked to artificial intelligence, has also performed among the best in the entire market, with an increase of 914% since the beginning of this year.
On the 4h chart, we notice that the price of RNDR is moving in an upward trend line.
With great respect to Fibonacci retracement levels. Especially 38.2 and 50% at the levels of $3.80 and $3.50.
The price of RNDR peaked at $4.90 and is now trading at $4.05. A drop in previous support levels represents a good buying opportunity.
3. Cardano (ADA)
The price of Cardano (ADA) witnessed a strong explosion, increasing by 80% since the beginning of this month.
Many analysts expect this upward momentum to continue, at least in the short to medium term.
But before that, there must be some downward correction, and this is what is happening currently.
The price of Cardano ADA peaked at $0.68. It is now trading at $0.555, near a previous low.
But the strongest support level is at $0.530. And the Fibonacci retracement level is 50%.
Then there is the 61.8% Fibonacci retracement level at $0.49. Until we reach the rising trend line, which represents the strongest support level.
4. Maker (MKR)
The performance of MKR in the past two months has not been as strong as the cryptocurrencies mentioned in this list. He was trading in a sideways range that was not linked to the market.
However, its performance has been very positive, with an increase of about 150% since the beginning of this year.
This pattern of movement is not new. By following the performance of this currency in many previous reports, we noticed that it was rising at a time when most of the market was declining. That’s what makes it a little special.
On the daily chart, we notice that the price of the Maker (MKR) has broken the lower border of the ascending price channel that it has been trading within since last summer.
The price is now trading at $1,270, near the strong $1,265 support level from which it bounced several times in the past.
The next support below is at $1160. It was also a very strong resistance level.
Warning: Finally, it is important to remember that the price movements of cryptocurrencies are strongly linked to the price of Bitcoin. Any strong news, whether negative or positive, cancels all technical levels in moments.
