Bitcoin Correction Causes Broad Crypto Market Selloff

Key cryptocurrency Bitcoin (BTC) is set to drop again after strong price gains in previous weeks and is trending 12 percentage points lighter at the start of the week. Following Bitcoin’s price weakness, most of the top 10 and top 100 altcoins also lost double-digit value. Ongoing uncertainties surrounding the war in Ukraine, combined with a more restrictive monetary policy from the US Federal Reserve, again had a negative impact on price developments in global financial markets.

The still high correlation between Bitcoin and the Nasdaq tech index is currently reinforcing this downward trend. The extent to which this is just a short-term price consolidation or whether financial markets are threatened with an overall corrective move will need to be watched closely over the coming weeks of trading.

Best price evolution among the top 10 altcoins:

Dogecoin (DOGE)

Price analysis based on the value pair DOGE/USD on Binance

  • Over the past few trading days, Dogecoin has benefited from the entry of Tesla founder Elon Musk into US technology company Twitter.
  • Investors count on the future integration of Dogecoin on the Twitter platform.
  • Although Dogecoin also corrected more clearly to the south in the last trading days, it benefited from the significant price increase at the start of the week in a week-to-week comparison, which is why the price decline of about four percentage points was relatively small.
  • Despite the surge in price, Dogecoin was unable to sustainably overcome the EMA200 (blue) at $0.17 and then fell back to $0.14 currently.

Bullish variant (Dogecoin)

  • The price of Dogecoin thus continues to trade in the area between $0.119 and $0.180.
  • DOGE price may currently stabilize in the area of ​​the EMA20 (red) and EMA50 (orange) moving average lines.
  • The bulls must now do everything in their power to retake the horizontal resistance at $0.151.
  • Above, another cross resistance of the 23 Fibonacci retracement and the 200 EMA is already waiting at the $0.170 area.
  • If this resistance level is found again and the MA200 (green) at $0.180 is also crossed, a further increase up to $0.195 or even $0.224 is possible.

Other price increases possible

  • In order to get back into long-term bullish territory, investors need to find new resistance at $0.238 and $0.264 in the medium term.
  • From the perspective of the current chart, the purple resistance zone can be seen as the maximum price target for the upcoming period. The area between $0.290 and $0.313 currently represents an insurmountable price hurdle.
  • Only when Dogecoin (DOGE) breaks above the resistance level at $0.313 at the daily closing price can higher long-term targets between $0.354 and $0.384 be initiated. This is where the Fibonacci 61 retracement is the maximum upside target for the next few months of trading.

Bearish variant (Dogecoin)

  • However, if DOGE price corrects further south and breaks below $0.138 on the daily close, support at $0.119 becomes an objective.
  • A solid brand of support can be found here with the Supertrend.
  • A breakout of this support further obscures the chart picture and activates the next price target in the area of ​​the year low at $0.106.
  • If the selling pressure persists here and the year low is dynamically undercut, an extension of the correction to the next support at $0.086 should be expected.

Back to the low prices of 2021

  • In the medium term, Dogecoin (DOGE) may even fall back to the April 2021 breakout level of $0.063. At this price, the bulls should initially resist and stabilize the DOGE price in the short term.
  • If there is another overall market correction over the next few trading months, a return to support at $0.050 cannot be ruled out. This support level is currently acting as the maximum bearish price target.

Indicators (Dogecoin):

  • The RSI as well as the MACD indicator are threatening to form new sell signals in the daily chart.
  • On the other hand, the two indicators of the weekly chart are showing a slight buy signal. However, this remains to be confirmed in the coming weeks.

Worst price action among the top 10 altcoins:

Solana (SOL):

Solana (SOL) price analysis week 13 22

Price analysis based on the value pair SOL/USD on Binance

  • Solana has corrected more clearly to the south over the past seven trading days and is currently trading nearly 30 percentage points below its April 2 high.
  • The selling pushed the SOL price back below the orange support zone at $102 currently.
  • Solana is once again trading below the EMA20 (red), EMA50 (orange) and EMA200 (blue) moving average lines.
  • The supertrend is now also at risk of being broken down again, which will further cloud the picture on the short-term chart.

Bullish Variant (Solana)

  • After a price rally of a good 80 percentage points, Solana (SOL) is again in a downtrend and is trading just above the breakout level at $100.
  • In this zone, bulls need to stabilize the price of SOL in order to keep the chance for a further rise in price.
  • In the near term, Solana needs to retake the orange resistance zone around $120 to generate additional upside potential.
  • A recovery from the 200 EMA can be seen as the first important step towards the last significant high at $142.

Further likely price increases

  • If the cross resistance of MA200 (green) and 78 Fibonacci retracement at $148 is subsequently broken, further price targets at $161 and $178 are activated.
  • If this trend holds, further resistance levels at $190 and $205 will hold investors’ attention in the medium term.
  • However, only if Solana can sustainably break through the resistance at $218 is a move back to the red resistance zone between $239 and $259 in the long term.
  • Here, the SOL course has bounced south several times in 2021.
  • From the perspective of the current chart, the all-time high of November 6, 2021 can still be considered the maximum bullish price target.

Bearish Variant (Solana)

  • The bears were able to further increase the selling pressure over the past week of trading.
  • Solana has broken back below all moving average lines over the past few trading days, further obscuring the chart picture.
  • If the SOL price also breaks down the support at $100 with continued overall market weakness, further price decline can be expected in the near term.
  • Initially, the correction should extend to around USD 88.
  • If this support is also dynamically undercut, the yellow support zone will return to the eyes of investors. In addition to the lower Bollinger Band, the lows of recent trading months can also be found here.

Selling pressure increases

  • If the seller is successful in breaking through this strong support zone, the correction will immediately extend to $66. Buyers are likely to become more active here.
  • The green support zone between $58 and $52 can still be seen as a medium-term price target on the bottom. This area contains the August 2021 breakout level and the upper level 38 Fibonacci Retracement.
  • For now, this area represents the maximum target area on the underside.

Indicators (Solana):

  • The MACD indicator as well as the RSI activated new sell signals daily.
  • In the weekly chart, both indicators remain short. An extension of the correction should therefore be considered more likely at this time.

Top 10 stability

  • Bitcoin’s (BTC) price drop of more than 12 percentage points also drives all top 10 altcoins south.
  • Apart from Dogecoin (DOGE) with a price correction of only 4%, all other major cryptocurrencies are losing double-digit values.
  • The list of weekly losers is led by Solana (SOL) with a price drop of 25%, followed by Terra (LUNA), Avalanche (AVAX) and Polkadot (DOT) with a correction in value of around 23% each.
  • After several weeks of trading with strong price gains, investors are currently taking more profits and watching the negative price development from the side.
  • A look at the ranking of the top 10 altcoins shows two changes in position. Cardano (ADA) is able to overtake Terra again and climb back to sixth place despite a 20% price drop. Avalanche also moves up a spot, overtaking Polkadot in eighth place in the standings.

Winners and losers of the week

  • The entire crypto market is currently in reverse.
  • In a weekly comparison, the vast majority of the top 100 altcoins show a price discount.
  • Only Chain (XCN) with around 8% price increase and Monero (XMR) with 2% increase in value can escape the downtrend.
  • The long list of underperformers is led by Waves (WAVES) with a 53% price drop, followed by Synthetix Network Token (SNX) with a 35% price drop.

Important price corrections for many altcoins

  • Along with Aave (AAVE), Axie Infinity (AXS), Frax Share (FXS) and The Graph (GRT), four other cryptocurrencies also show a drop in value of around 30 percentage points.
  • A good half of the top 100 altcoins lost more than 20% in value in a weekly comparison.
  • The price correction in key cryptocurrency Bitcoin (BTC) is having a negative effect on the price action of altcoins this week.
  • Whether this trend continues in the coming trading week largely depends on the direction of Bitcoin prices.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations, but merely an analyst’s assessment.

The images in the chart were created using TradingView created.

USD/EUR exchange rate at time of writing: 0.92 EUR.

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