It is an ideal gathering perspective on the best and worst-case scenarios for the top three altcoins by market cap- Ethereum, Litecoin, XRP- this is security against uncertainty. The meltdown is witnessed across most financial markets, including the cryptocurrency industry, sending investors into a state of panic.
The Crypto Fear and Greed Index (CFGI) is signaling an extreme level of fear in the cryptocurrency market. This single analyzes the sentiment and emotions of the investors from various sources such as social media posts, volatility, and trends.
Considering these data sets, the CFGI has reached a value of 8, which is the lowest it has been since August 2019. The extreme level of commotion in the market showcases the probability that most digital assets in the industry could experience declination. The topmost altcoins by market capitalization- Ethereum, Litecoin, and XRP are building huge bearish patterns in their weekly charts respectively. And this could be even catastrophic to most of the portfolios.
Ethereum, for instance, seems to be creating a formation of a symmetrical triangle on the 1-week chart that suggests an 83% retracement upon the breakout point. This particular target is given by measuring the distance between the high and low of the pattern and adding it to the breakout point.
Peter Brandit, a 45-year-old trading veteran explained that with similar lines on the chart, Ripple’s XRP displays to be sitting on top of “white space”. A spike in the selling pressure behind this cryptocurrency over the current price levels is expected to reach $0.061, $0.031 or even $0.009.
Moreover, Litecoin is creating a descending triangle in its weekly chart as a direct consequence of its price action since mid-2018. A descending trendline can be drawn around the series of lower highs while a horizontal support line connects the swing lows.
The bearish formation suggests that LTC has depreciated in pricing by 90% following a weekly candlestick close below the $25.5 support level.