Key Takeaways:
- Cryptocurrency market continued to bleed in the aftermath of Fed announcement.
- RUNE, CHZ shook off Fed FUD, but XMR and DOT remained bearish.
PATNA (CoinChapter.com) — The cryptocurrency market continued to bleed on Dec 15 after the Fed announced a 0.5% hike in benchmark interest rates. Yet, RUNE and CHZ recovered from the news, while DOT and XMR buckled from the selling pressure.
Major cryptos like Bitcoin (BTC) and Ethereum (ETH) price reversed yesterday’s gains. Both crypto tokens, which account for over half of the total crypto market cap, lost nearly 5% over the past 24 hours.
The Fed’s predictions of 5.25% benchmark rates in 2023 seem to have scared investors out of the risk-on sector. The S&P 500 index fell over 110 points on Dec 15, losing 2.76%. Additionally, news of the Bank of England and European Central Bank raised their interest rates by 0.5%.
The rate hikes suggest that central banks continue to struggle with inflation.
Monero (XMR) Bulls Struggling To Break Above Key Resistance
Bitcoin’s nearly flat price action over the past few weeks likely drove investors to XMR, helping the privacy-centered crypto token Monero (XMR) defy the wider market trend in Nov. XMR price reached a multi-week high of $154.26 on Dec 13 after gaining nearly 33% from Nov 9’s low of $116.
However, the uptrend was rebuffed by Monero’s multi-month descending trendline resistance.
Moreover, the crypto token’s 200-day EMA (green wave) strengthens the trendline resistance. The long lower wick on XMR price’s Dec 14 daily candle shows the aggressive efforts of buyers to break above the resistance.
However, bears seem to be especially protective of the EMA-trendline resistance confluence. Sell-off continued on Dec 15, as XMR price fell more than 2.6% to form a low near $146. Hence, the XMR crypto token price would require a massive boost to break above the resistance confluence near $153.
Breaking and consolidating above immediate resistance might help XMR price reach $161.5 before downside corrections pare gains.
Meanwhile, the momentum oscillator MACD has been bearish for XMR price. Positive bars on the MACD histogram are contracting, indicating the MACD line (difference between 12-day and 26-day EMA) moves toward the MACD signal line (9-day EMA of MACD), likely to form a bearish crossover.
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Traders often view bearish crossovers as a sell signal. A sell-off might send XMR price tumbling below its 20-day EMA (red wave) and 100-day EMA (blue wave) to test support from its 50-day EMA (purple wave) near $142.7.
Breaching below immediate support might result in the Monero crypto token dropping $136 before recovering.
THORchain’s RUNE token Forms Bear Flag
THORChain’s in-house token, RUNE, has formed a bearish pattern called the bear flag. In detail, the pattern forms when a cryptocurrency’s prices chart a sharp countertrend (the flag) after a short-lived trend. Flag patterns usually indicate a reversal of the countertrend.
Since an uptrend marks the consolidation period after a sharp downtrend, investors move in due to FUD from the price fall. Hence, higher-than-average volumes often accompany the consolidation period.
Traders calculate the bear flag pattern’s price target by subtracting the flagpole’s length from the breakout price level. As a result, RUNE price might fall to $0.76, a nearly 49% drop from current prices, if the crypto token confirms the pattern.
THORChain bulls would likely try to push the token’s price above the pattern’s upper trendline to invalidate the bear flag pattern.
RUNE EMAs Might Form A Golden Cross, But Overbought RSI Risks Remain
The THORChain crypto token price formed a high of $1.49 on Dec 15, spiking 12% from Dec 12’s low of $1.33.
The recent price action has helped RUNE’s 20-day EMA (red wave) move close to needling above the crypto token’s 50-day EMA (purple wave), forming a short-term bullish pattern called the golden cross. Traders often consider the pattern an indicator of positive market sentiment and a buy signal.
As buyers move in, RUNE price would likely target resistance near its 100-day EMA ( blue wave) at $1.58. Moreover, after the crypto token consolidates above immediate resistance, RUNE price might reach $1.72 before retreating.
However, an uptrend might push RUNE’s relative strength index into overbought levels. Currently, the RSI remains close to the overbought threshold of 70, clocking at 63.56 on the daily timeframe.
Overbought RSI levels often invite selling pressure as traders consider it a signal of a potential trend reversal. Hence, RUNE might fail to invalidate the bear flag setup, with sell-offs forcing the crypto token to test support near $1.44.
Failure of immediate support could result in RUNE price dropping to $1.34 before recovering.
Chiliz (CHZ) Enjoying Bullish MACD, But Bearish Pressure Remains
With the FIFA World Cup in Nov, traders expected the sports-themed crypto token Chiliz (CHZ) to make massive profits. Instead, CHZ price dropped 48% since the event began on Nov 20, reaching a low of $0.13 on Dec 14.
However, the CHZ crypto token responded strongly to news of the Fed raising rates as it rose to a daily high of $0.15 on Dec 15, jumping more than 15% in the process. The bears have defended the 20-day EMA (red wave) extremely well, with not even a single wick nearing the EMA trendline.
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If Chiliz crypto token price capitulates to the selling pressure, CHZ might fall to test support near $0.137. Moreover, failure of immediate support would likely force the Chiliz cryptocurrency price to drop nearly 12% to reach $0.126 before recovering.
Meanwhile, the momentum oscillator MACD is moving towards bullish levels. Negative 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).
When the MACD line moves above its signal line, it will form a bullish crossover. As a result, buyers might enter the market, helping CHZ price challenge resistance near $0.15. Furthermore, breaking above immediate resistance could give the Chiliz crypto price the momentum to reach $0.162 before retreating.
Polkadot’s DOT Forms Falling Wedge Pattern
Polkadot’s in-house token, DOT, has formed a bullish pattern called the falling wedge. The pattern forms when a token’s price bounces between two downward-sloping, converging trendlines. The volume of the asset decline as the channel converges.
Following the consolidation, once buyers move in, the asset would need to break above the upper trendline with high volumes to confirm the pattern.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Hence, the rules of technical analysis forecast a price target of $12 for the Polkadot crypto price. DOT’s price target is a massive 132% boost from current levels.
However, DOT would likely (if) validate the pattern by at least mid-Q1-2023.
Polkadot Bulls Defend $5 Support, But MACD Forecasts Bearish Signals.
Traders have been indecisive regarding DOT price action as the long upper and lower wicks on Dec 15’s daily candle shows. The Polkadot crypto token formed a low near $5.12 before buyers helped recover losses.
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If the bulls continue buying, DOT price might move to challenge resistance near its 20-day EMA (red wave) around $5.4. After conquering immediate resistance, Polkadot crypto token price would likely reach resistance from its 50-day EMA (purple wave) near $5.7 before downside corrections pare gains.
Meanwhile, the momentum oscillator MACD forecasts bearish sentiment for the Polkadot token. 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).
When the MACD line moves below its signal line, it will form a bearish crossover. As a result, buyers might flee the market, forcing DOT price to drop to support near $5, which has supported Polkadot’s price action since Nov 20.
However, breaching below immediate support might see DOT falling to $4.8 before recovering.
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