- Most cryptos on their way to recovery after a week of bloodbath.
- STEPN, Pancake Swap, and Cronos spark investor interest as they looked to secure an uptrend.
To say the least, it has been a dramatic week in the crypto space. The de-pegging of one of the top stablecoins from its $1 value sent shockwaves across the Web3 industry. TerraUST crashed as much as 90% since Monday to the current price of around $0.0971 on FTX. LUNA has dropped below one penny and has been delisted by the world’s largest crypto exchange, Binance.
Bitcoin also crashed to lows of around $25,000. As the market appeared to be flashing in the green across the board, traders were interested in STEPN (GMT), PancakeSwap (CAKE), and Cronos (CRO). What are the next levels to keep an eye on for these top trending cryptos today?
Top 10 Cryptocurrencies
STEPN’s V-Shaped Recovery Forecasts An 81% Spike
After crashing from $2.74 to lows of $0.77 between May 9 and 12, GMT has started recovering the losses. The move-to-earn token is up over 38% on the day and bulls appeared determined to push the price higher.
This price action led to the appearance of a V-shaped chart pattern on the four-hour chart. This is a significantly bullish chart pattern that forecasts a quick and sharp recovery back to the level prior to when the decline started.
In this case, the V-shaped bullish pattern projects STEPN’s return to $2.74. Such a move would represent an 81% ascent from the current price.
The movement of the Relative Strength Index (RSI) towards the positive region and the position of the parabolic SAR below the price support the bullish thesis for GMT.
GMT/USD Four-Hour Chart
On the downside, a four-hour candlestick close below $1.14 would trigger a drop first to the $1.0 psychological level and later towards the technical pattern’s low at $0.777. If this happens, it would completely invalidate the upward thesis, increasing the possibilities of lower moves.
PanCake Swap Needs To Reclaim $10 To Secure The Upside
CAKE rebounded off a key support level at $3.80 and was up 17% on the day. The RSI showed that Pancake Swap was massively oversold, supporting the ongoing recovery. This showed that a trend reversal was underway, which is normally the case when an asset is oversold as investors get on the dips.
However, a look at the daily chart (below) showed that CAKE faced multiple barriers in its path to recovery. The first resistance would emerge from the $5.0 psychological level. Roadblocks would emerge from the $5.9 level, the 100-day Simple Moving Average (SMA) at $7.4, and the 50-day SMA around $8.0. The final hurdle was at $10 psychological, where the 200-day SMA sat. A clear bullish breakout would be realized if bulls flip this level back to support.
CAKE Daily Chart
On the flip side, bears could aggressively defend the $5.0 resistance and the ensuring headwinds could pull CAKE back below $3.0 or lower to $2.0.
Cronos’ Uptrend Depends On $0.17 Support
CRO looked strong as it rebounded off a crucial support zone at $0.177. Note that Cronos bounced off this level in late October rising over 460% to set a record high at $0.97.
If history repeats itself, CRO could stage a similar rally. However, the exchange token would have to first clear barriers at $0.25, $0.311, and the 50, 100 and 200 SMAs at $0.38, $0.40, and $0.45 respectively.
This positive outlook was supported by the upward movement of RSI. Its position at 26 was an indication that Cronos’ price was massively oversold and that a trend reversal was in the offing.
CRO/USD Daily Chart
On the other hand, a daily candlestick close below the immediate support at $0.17 would imply the inability of the buyers to sustain the recovery. Such a scenario could see CRO drop back to $0.125.
