Analysis

Altcoins Still Bleed: Buy, HODL, or Sell your Crypto?

Dhirendra Chandra Das

Lately, crypto markets have started to bleed red for several reasons, such as fear of recession, regulatory uncertainty, crackdown, etc. Top cryptocurrencies like Ethereum, BNB, Cardano, and XRP have already lost more than 6% over the last week.

In this article, we will explore what's the best course of action for traders and investors. Whether they should buy the dip, hold their investments, or sell now.

Situation of The Crypto Markets

Altcoins are witnessing a rapid fall in their prices. Cryptocurrencies like Ethereum, XRP, Cardano(ADA), and BNB are already witnessing a fall of more than 6%.

Severe Fall in Ethereum Price, Source CoinMarketCap

However, data from Defi Llama shows that there is a high quantity of buying in Ethereum Futures which shows people are buying in dips. However, we feel there is more room for a fall and you can read about this analysis at the end of this article.

Source: Defi Llama

Polygon's MATIC has lost more than 8.5% in the last 24 hours and more than 25% in the last 7 days. It has continually fallen in price since Feb 17, 2023, after which Disney canceled its metaverse plans with Polygon.

Top Losers

Surprisingly, Polygon is the 7th top loser in the current fall. Cryptocurrencies that have lost more than 10% are:

  • Injective – 11.26%
  • Render Token – 11.33%
  • AAVE – 11.08%

Note: Prices and percentage figures were when writing this article.

Reasons for Fall in The Crypto Markets

SEC's Witch Hunt

Lately, there has been a frequent crackdown on crypto markets. The SEC is supposedly pursuing over 130 cases against several crypto firms, including known institutions like Ripple Labs, Tron Foundation, and Binance.

Some of them are still fighting legal battles. Ripple seems close to a win. Binance has recently gone to court against SEC as the latter tried to freeze all the funds of Binance.US.

Fear of Recession

There is a fear of imminent recession in Western countries like the US, the UK, Canada, France, and Germany. Due to reduced business activity and increasing interest rates, businesses are finding it difficult to survive.

Buy, Sell, or HODL? Top Altcoins

It surely hurts to see your investments bleed. However, a miscalculated decision might kill your portfolio and any earning potential in the future. We suggest taking action based on the data.

We have used technical analysis to determine what you should do with the following altcoins.

1. Ethereum (ETH)

Etheruem has broken down from crucial support at $1,677, which will now become a hurdle on the upside. On the downside, it might continue to fall toward $1,450, its next support.

Our Analysis: SELL

2. Ripple (XRP)

Ripple is very close to a court verdict against SEC. It seems from several experts that it might win the case. Also, on technical charts, it is still above its 50-DMA. But technical indicators like RSI and MACD are indicating a further fall in prices to $0.42.

Our Analysis: HODL, Sell if it breaks $0.45

3. Cardano (ADA)

Cardano has been constantly falling for the last 2 months. It has broken all the supports and can be considered a free fall situation. It is best to avoid such cryptocurrencies and only buy when markets rally.

Our Analysis: SELL

4. Polygon (MATIC)

Polygon has fallen continuously for the last 4 months (Feb 17). Disney's now-canceled metaverse plans can explain the fall in price. Currently, it has lost more than 10% in the last 24 hours. We expect no recovery anytime soon unless some big positive event or news comes in its favor.

Our Analysis: SELL

5. Litecoin (LTC)

Litecoin looks the most promising in our analysis and has shown early signs of recovery. RSI and MACD have reached their peak negative levels and are expected to turn in Litecoin's favor. However, unless the price goes above $78, it's still a risk to buy.

Our Analysis: BUY above $78

Target: $84

Stoploss: $75

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.