Few altcoins are struggling to keep up with the crypto market
Few altcoins are struggling to keep up with the crypto market
- Most cryptos have rallied since the beginning of the year.
- After the recent consolidation, some altcoins have failed to keep up with the pace of the market.
- Divergence and price rejection are among the reasons why some altcoins have failed to maintain momentum.
Bitcoin has had an impressive year in which most cryptocurrency markets have rallied. The initial surge in January 2023 was universal and almost all altcoins saw gains. After consolidating in the first week of February, some altcoins failed to absorb the rediscovered momentum.
According to analysts, divergence and price rejection are among the factors that caused affected altcoins to fail to maintain momentum in the second leg of the rally. As reported, Frax Share (FSX) is one of the top losers of this rediscovered market strength. After touching $14.69 on Feb 9th, FXS failed to push higher.
A move lower has pushed the token below the resistance at $11.40. This qualifies the initial breakout as a divergence and threatens to propel FXS price towards the $8 region. Analysts believe that if the token can reverse and surge above $11.40, it will open an opportunity to head towards $15.
The analysts also identified NEO (NEO) as one of the few cryptos that struggled during this period. A descending resistance line established on NEO in June 2022 again proved too strong for the cryptocurrency despite strong market momentum.
If NEO fails to scale above resistance, it could drop to $7.60, analysts say. However, a break above the line could see NEO reach the $12.20 price region.
A third outlier spotted by the analysts is OSMOSIS (OSMO), which rallied with the crypto market in the early days of 2023, hitting $1.26 in the process. OSMO fell during the consolidation with the rest of the crypto market. However, analysts noted that a unique development for OSMO comes in the form of a descending resistance line.
According to forecasts, the symmetrical triangle created by the resistance line will play an important role in the development of OSMO prices. A breakout to the upside would imply a price rally that could push the price down to $1.10. Otherwise, if the price breaks out above the base, it will drop to $0.80.
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Source : www.investing.com