Key Takeaways:
- The crypto market was in the red on Dec 7.
- But, altcoins like LOKA and FXS rose, while tokens like TKO, FORTH, and WRX faced selloffs.
NEW DELHI (CoinChapter.com) — The cryptocurrency markets declined on Dec 7. Despite the wider market’s downtrend, altcoins like LOKA and FXS continued to rise. On the other hand, tokens like TKO, FORTH, and WRX faced significant selling pressure.
1. TKO Price Jumps 82% In Two Days, But RSI Might Worry Buyers
The Tokocrypto (TKO) price has been rising since Nov 10. However, it took the TKO token a few tries to flip the multi-month descending trendline resistance into support. Additionally, the rising daily trading volumes indicate increased interest in the token.
The uptrend also resulted in the TKO crypto price registering its highest single-day gain since May 2021 on Dec 6. TKO’s daily candle on Dec 7 sported long wicks on either end, highlighting the indecision in the market.
Meanwhile, TKO’s recent price movement might have set up its 50-day EMA (purple wave) ready to needle above its 100-day EMA (blue wave), forming a bullish pattern called the golden cross. Traders often consider the pattern a buy signal.
A continued uptrend might help TKO price rise to resistance near $0.445. Additionally, breaking and consolidating above immediate resistance could result in the Tokocrypto token reaching $0.51 before downside corrections pare gains.
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On the hand, TKO’s bull run propelled its relative strength index into overbought levels. Currently, the RSI is at 78.25. Traders often consider overbought RSI levels an indicator of an impending trend reversal and hence, a sell signal.
As a result, TKO price might fall to test support near $0.385. Failure of immediate support could push the Tokocrypto token price below its 200-day EMA (green wave) and drop to $0.34 before recovering.
2. LOKA Price’s MACD Bullish, But Bearish Pressure Might Lead To A Bull Trap
League of Kingdoms Arena utility token, LOKA, has enjoyed a bull run since Nov 20. However, long upper wicks on the daily candles underscore the ubiquitous bearish pressure on the LOKA token.
The LOKA token spiked over 22% to reach a high of $0.53 on Dec 7. Bears seem to be defending the levels above the 100-day EMA (blue wave), which might pare gains for the crypto token. But, the momentum oscillator MACD has been forecasting bullish indicators for LOKA price.
Positive bars on the MACD histogram are expanding, indicating the MACD line (difference between 12-day and 26-day EMA) moves away from the MACD signal line (9-day EMA of MACD). Expanding positive bars indicate increasing bullish momentum for the LOKA token.
Bulls might enter the market, but LOKA would need to flip its 100-day EMA before targeting resistance near $0.53. Moreover, a break and hold above immediate resistance might result in LOKA price rise to $0.64.
Meanwhile, the token’s relative strength index is dangerously close to becoming overbought, clocking at 69.09 on the daily charts. Overbought RSI levels often precede trend reversals favoring bears.
As a result, the LOKA token price might drop to support near $0.453. Breaching below immediate support could see the crypto token fall to test support from its 50-day EMA (purple wave) near $0.39 before the token recovers.
3. FORTH Price Rally Foiled By Descending Trendline Resistance, Again
Ampleforth’s governance token, FORTH, was on a nine-day-long uptrend before the token reached the multi-month trendline resistance. The trendline previously repelled FORTH price action more than seven times.
In addition, the long upper wicks on recent daily candles further underscore the bearish pressure on the token. FORTH dropped 10% to a low of $3.59 on Dec 7 after being rebuffed by the trendline resistance. Furthermore, the 100-day EMA (blue wave) reinforces the trendline resistance.
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For the Ampleforth crypto token price to start a bullrun, FORTH would need to break above the resistance confluence with good volumes and target resistance near $3.91. Breaking and holding above immediate resistance might help FORTH price to reach $4.33 before downside corrections pare gains.
If the downtrend continues, FORTH price might end up testing support from its 50-day EMA (purple wave) near $3.53. Additionally, breaching below immediate support could force the crypto token’s price to drop to support from its 20-day EMA (red wave) near $3.27.
Meanwhile, the relative strength index for FORTH remains neutral, with a value of 60.93 on the daily charts.
4. FXS Registers Impressive Gains, But Corrections Might Be Round The Corner
Frax’s governance token, FXS, recent bullrun pushed the token up by more than 45% in two weeks, helping the token reach a high of $6.24 on Dec 7 from Nov 23’s low of $4.29.
But, long upper wicks on daily candles indicate bears are selling on relief rallies, defending levels above the 100-day EMA (blue wave). The Frax crypto token price rose 17% from the day’s low of $5.33 on Dec 7. Profit booking by traders pared the token’s gains.
Moreover, the relative strength index for FXS is near the overbought threshold of 70, currently clocking at 67.44 on the daily chart. Traders consider overbought RSI levels an indicator of upcoming trend reversal and a sell signal
If the Frax token fails to needle above its 100-day EMA, FXS price might drop to test support near $5.54. Moreover, breaching below the immediate support level could result in FXS price dropping to test support from its 50-day EMA (purple wave) near $5.2 before recovering.
On the other hand, if FXS price moves above its 100-day EMA, the crypto token might rise to challenge resistance near $5.91. In addition, moving and consolidating above immediate resistance could help the Frax crypto token price reach $6.24 before downside corrections pare gains.
5. WRX Price Momentum Slowing Down As Bears Defend EMA Resistances
WazirX’s native token, WRX, has failed to clear above its 50-day EMA (purple wave) since Nov 27. Consistent long upper wicks on WRX daily candles highlight the ubiquitous bearish pressure on the WazirX token.
WRX price nearly 8.5% to a low of $0.168 on Dec 7. Meanwhile, the momentum oscillator MACD forecasts a bearish signal for the WRX token.
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Positive bars on the MACD histogram are contracting, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving towards the MACD signal line (9-day EMA of MACD). Contracting positive bars indicate declining bullish momentum for the WazirX crypto.
The sellout might force WRX price to drop to test support from its 20-day EMA (red wave) near $0.166. Breaking below immediate support could result in WRX price falling to $0.16 before recovering.
Conversely, if bulls push WRX price upward, the WazirX token would likely target resistance from 50-day EMA (purple wave) near $0.175. A break and hold above immediate resistance might see WRX price rise to $0.18 before retreating.
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