NEW DELHI (CoinChapter.com) — The cryptocurrency market painted a minor relief rally on the last day of Nov, but bearish pressure remained for the crypto tokens. Crypto tokens like LINK, UNI, AVAX, REEF, and STX registered minor gains before bears started booking profits.
Major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) renewed their effort to move above immediate resistance levels. However, several crypto assets saw aggressive selling by bears, resulting in the tokens losing ground later in the day.
Bearish headwinds, originating from the bankruptcy news of BlockFi and the protest against Covid restrictions in China, might hinder traders from entering the crypto markets.
Chainlink’s native token, LINK, has been on a ten-day-long uptrend. LINK price reached a high of 7.71 on Nov 30, a jump of more than 35% from Nov 21’s low of $5.71. However, long upper wicks on recent daily candles indicate bears are trying hard to push the LINK price downwards.
The Chainlink crypto token price flipped its 100-day EMA (blue wave) into support on Nov 29. On Nov 30, the token rose to $7.71 from the day’s low of $7.3, gaining nearly 5.5%. However, profit booking pared LINK gains later in the day.
Meanwhile, the momentum-oscillator MACD forecasts a bullish signal for the Chainlink token. 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 LINK price.
Bulls would likely try to defend the 100-day EMA support while pushing the Chainlink crypto price to target resistance near $7.7.
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Additionally, a break and hold above immediate resistance could provide LINK price the momentum needed to reach $8.29 before downside corrections pare gains. The $8.29 resistance rebuffed the Chainlink crypto price action between Aug 17 and Nov 4 this year.
Conversely, if bears push the LINK price below the 100-day EMA, the Chainlink crypto price might fall to test support from its 50-day EMA (purple wave) near $7.08. Breaching below immediate resistance could see the LINK price drop nearly 11% from current levels to test support near $6.62.
LINK’s relative strength index remains neutral, with a value of 57.57 on the daily charts.
UNI, Uniswap’s native token, formed a bearish technical pattern called the bear pennant.
In detail, pennants are continuation patterns. They form when a period of consolidation with converging trendlines follows a large movement in cryptocurrency prices. Then, the asset breaks out in the same direction as the large initial movement.
Thus, to confirm the pattern, UNI volumes need to move up. Otherwise, the crypto token would continue to consolidate below $5.9. For a bear pennant, traders calculate the price target by applying the initial flagpole’s height to the point where the price breaks out from the pennant.
Therefore, per the rules of technical analysis, the Uniswap crypto might fall to $3.37, a drop of more than 40% from current levels.
UNI’s price rose to $5.91 on Nov 30, jumping 12.5% from Nov 29’s low of $5.25.
Additionally, the momentum oscillator MACD painted a bullish crossover for the Uniswap token on Nov 29. A bullish crossover forms when the MACD line (difference between 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD).
Traders consider the pattern a buy signal. Therefore, a buying spree might help the UNI price conquer resistance from its 50-day EMA (purple wave) near $6.01. Moreover, breaking above the immediate resistance could see the Uniswap token price challenge resistance near $6.3 before retreating.
Conversely, a downside correction could result in the UNI token testing support near $5.4. A sustained sell-off might force Uniswap to shed nearly 11% from its current prices and drop to $5.11 before recovering.
Avalanche’s native token, AVAX, prices have been crabbing since Nov 23. The Avalanche crypto token rose to a daily high of $13.2 on Nov 30 after gaining nearly 6%. However, long upper wicks on the token’s daily candles suggest a strong bearish presence near the 20-day EMA.
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Despite the nearly stagnant price action, the momentum oscillator MACD is signaling increasing bullish momentum for the AVAX token.
Positive bars on the MACD histogram are expanding, indicating the MACD line (difference between 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD). They are expanding positive bars, signaling strengthening bullish momentum for a crypto token.
AVAX’s price would need to break above resistance from its 20-day EMA (red wave) near $13.3 to instill some confidence in its price action. In addition, breaking and holding above immediate resistance might help the Avalanche crypto price target resistance from its 50-day EMA (purple wave) near $14.8 before retreating.
On the other hand, the increasing bearish pressure might result in AVAX falling to test support near $12.2. Moreover, breaching below immediate support might cause the Avalanche crypto to drop to $11.12 before recovering.
REEF’s price action has been similar to AVAX, with the token moving laterally since Nov 23. The native token of Reef Finance jumped nearly 4% on Nov 30 to reach the day’s high of $0.0031.
However, for the REEF price action to inspire confidence among buyers, the Reef Finance crypto would need to conquer the resistance near $0.00315, which has rebuffed REEF’s price action since Nov 17.
Moving above immediate resistance might help REEF price rise above its 20-day EMA (red wave), and challenge resistance near $0.0035 before downside corrections pare gains.
Conversely, if the REEFUSD pair fails to start an uptrend, the crypto token price might drop to test support near $0.0029. Breaching below immediate support could force the REEF price to fall to $0.00256, reaching a new all-time low.
Meanwhile, the relative strength index for REEF remains neutral, with a value of 38.66 on the daily charts.
STX, the native token of Stacks, formed a bullish technical pattern called the ascending triangle.
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows forms an ascending triangle pattern. Volume helps determine if a breakout is strong.
In an ideal world, buyers would enter the market as the trendlines close the gap, pushing prices above horizontal resistance with heavy volumes. Unfortunately, a low-volume breakout on the upside will likely fail, resulting in a pullback.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. Therefore, STX prices might jump more than 34% from current levels to $0.334 if the crypto confirms the triangle setup with high volumes.
Meanwhile, the Stacks token is facing massive selling pressure. On Nov 28, STX price spiked more than 53% to a high of $0.356 before downside corrections pare gains, and STX closed the day with only 5.8% gains.
Additionally, the long upper wick on Nov 30 emphasizes the bearish pressure on STX price, with the token falling nearly 4% to reach the day’s low of $0.247. If the sell-off continues, the Stacks crypto price might needle below its 20-day EMA (red wave) to test support near $0.24.
A marketwide sell-off might force STX price to test support near $0.223 before recovering.
On the other hand, if bulls move in to defend the 20-day EMA support, the buying spree might help STX price target resistance near $0.261. A break and hold above immediate resistance could see the Stacks crypto price rise 17% to challenge resistance near $0.29 before retreating.
Meanwhile, the RSI for STX remains neutral, clocking at 48.46 on the daily charts.’
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