As the bulls triggered an early December revival, the bears were quick to negate them by instigating a sizeable sell-off over the past day. Consequently, altcoins like Ethereum, MATIC and Terra’s LUNA registered double-digit losses on their daily charts.
After touching their multi-week milestones this month, most cryptos breached their long-term support levels.
After a brief late November upturn, ETH touched its two-week high on 1 December. However, as the broader market slumped, the largest altcoin witnessed a breakdown from the ascending broadening wedge after noting a 17.6% 24-hour loss.
After striking its ATH, the bears triggered an over 27% decline (from 10 November) to touch the alts’ seven-week low on 3 December.
This fall led the alt to breach its 37-day support at the $3,976-mark. Moreover, the pullback occurred on substantially high trading volumes, depicting a strong bearish move. At press time, the alt traded at $3,866.61.
The RSI was deep into the oversold region while pointing at a high sell-off phase. Now, it might be in for a trend reversal. Further, DMI visibly showed a bearish preference, but the ADX displayed a slightly weak directional trend. The bulls will need accelerated force to breach the immediate resistance to prevent a gradual downtrend.
After a minor retracement, MATIC witnessed a monstrous 46.25% ROI from 28 November (low) to 3 December. The alt grew after marking a rising wedge on the 4-hour timeframe. This incline propped MATIC to touch its six-month high on 3 December. Accordingly, the price breached its six-month-long resistance at the $2.22-mark.
However, the altcoin saw a 15.4% decline in its value over the past day. MATIC almost followed the market trend as it saw a downturn after a bullish revival. However, bulls ensured seven-week-long support at the $1.43-mark.
At press time, MATIC traded at $1.795. The RSI undeniably preferred the bears. Presently, the 38-mark becomes crucial for the bulls to uphold to prevent a further breakdown towards the oversold region. Further, DMI and MACD reaffirmed the previous analysis.
LUNA lost nearly 23% of its value from 15 to 26 November post an ascending channel breakdown. Consequent to this, it touched its five-week low on 24 November.
After which, the alt saw an exceptional rally of over 80% from 26 November to 3 December. As a result, the price action broke out from the descending channel and entered into price discovery until it touched its ATH on 3 December.
However, the altcoin saw a 20.8% decline in 24 hours and traded below its 20-SMA. Despite the sharp plunge, LUNA stood above the 50-200 SMA. At press time, LUNA traded at $55.37. The RSI saw a 30 point plunge over the past few hours, depicting a strong bearish bias. Additionally, AO and MACD confirmed RSI’s conclusion.