Cardano was projected to oscillate between $1.60 and $1.78 over the shorter term. Chainlink could be rejected above $30 and fall back to $24-support. Lastly, Filecoin was at risk of a breakdown from $84.5.
Cardano [ADA]
Source: ADA/USD, TradingView
Stochastic RSI highlighted a bearish divergence and indicated some weakness in Cardano’s rally from $1.51-1.88. A correction on 4 June only made matters worse as ADA retraced by nearly 10% in just two sessions of trade. Since the pullback, ADA has largely traded between $1.60-$1.77- a channel that would likely be maintained over the coming sessions. Stochastic RSI’s crossover in the oversold zone suggested a bullish resurgence but gains would be limited to $1.89.
In fact, ADA’s market looked primed for scalping as price swings were expected within its current channel. On the other hand, MACD’s downtrend highlighted a bearish outcome and bulls would need to defend $1.68 from a sharper sell-off.
Chainlink [LINK]
Source: LINK/USD, TradingView
A recent analysis pointed towards a lack of retail traders in the Chainlink market- a situation that could have implicating effects on LINK’s short-mid trajectory. A look at its 4-hour chart showed that the cryptocurrency has steadily formed lower highs since early May. With a dearth of buying pressure in the market, LINK has been unable to hold on to key levels even prior to the May 19 sell-off.
Awesome Oscillator– a measure of momentum in the market- was below the half-line for a period of 15 days in May. Even though bulls have attempted a recovery, LINK’s move from $15-35 lacked conviction to trend higher. Considering its top sloping trendline, LINK would be denied above $30 and focus would be on $24-support. Conversely, a rise above this upper ceiling could see gains up to $35. Lower highs on RSI confirmed with LINK’s price action and reflected backed a bearish outcome.
Filecoin [FIL]
Source: FIL/USD, TradingView
Filecoin’s jump from $70 to $95 was quite impressive but what was more interesting is that it maintained higher levels despite a broader market correction on 04 June. On the downside, bearish momentum was building up on the Awesome Oscillator and FIL could be heading for some losses. Losing out on its press-time support would shift the focus to the defensive line at $75. A bearish divergence on the RSI also indicated weakness in FIL’s movement.
If the market takes a bullish turn, a strong resistance zone lay between $95 and $110.
