Indeed, the cryptocurrency industry has witnessed massive falls within the last two days. With that, ETH and DOGE slumped towards their multi-yearly/month lows on January 22. For now, the alts should regain their lost support flows on surged volumes for possible recoveries.
The 4hrs price chart indicates the leading alt recorded a downward channel breakout, which halted near the previous supply territory. However, ETH bulls could not step up to defend the critical long-term footing at $3,000 during January 21 market-wide crash.
The crypto registered many red candles within the past 48 hours after the January 21 large engulfing stick. ETH suffered a 29.64% loss since January 20 peak, touching a 25-week low on January 22. The downward period saw Ethereum forming a declining wedge.
While publishing this content, Ether traded at $2,433.5. The Relative Strength Index tested the 58 resistance level on January 20 after retesting the oversold area following a double-top breakdown. However, the broad market crash had the indicator dropping by a whopping 43-point, hitting a 22-month low during January 22 sessions.
However, it bounced back but remained deep within the oversold region. Furthermore, the Moving Average Convergence Divergence reaffirmed the bearish strength, but the histogram appeared to be near equilibrium.
Dogecoin witnessed a whopping 55.95% ROI from January 10 low until touching a month-long peak on January 14. Meanwhile, bears ensure the resistance at $0.1919 since then, as the token saw a more than 41.18% drop, hitting a 9-month low on January 22.
Bulls appeared to defend $0.1262. Nevertheless, the closest resistance stands at $0.1456. Moreover, the meme coin saw an 11.4% surge within the past day. While publishing this content, Dogecoin traded at $0.1383.
The Relative Strength Index struggled to stabilize beyond the 42-resistance within the last six days. However, the indicator noted a 19-point uptick from the oversold region. Though the on-balance volume witnessed a dip, it maintained levels that supported surges previously. Such a reading suggests possibilities of a bullish comeback.
Nevertheless, the altcoins will depend on Bitcoin’s reactions to their up-and-coming price trends. While publishing this content, BTC struggles to reverse the latest plummets, trading around $35,777. Maintaining uptrends might mean near term bullish outlook for the crypto industry.