After a Santa rally in the first month of 2023, cryptocurrencies are starting to move sideways, which suggests a time of profit booking for retail investors as well as crypto whales. Most altcoins are facing resistance around the previous support, which makes the crypto predictions complex for experts. Interestingly, altcoin prices can move both ways. If the prices break the resistance, they will become bullish long-term. Otherwise, they will continue the downtrend, which started in March 2022.
However, you can find a red flag in the behavior of whales because the chart patterns are showing an early sign of bearishness because the whale groups might book their profit after a short rise in some digital assets. It is true that all altcoins are different, and their chart patterns depend on the sentiment and use cases of blockchain technology. That is why today, we are going to analyze a few assets that observed large transactions. It will help you to decide whether it is a concern to keep your hard-earned money in those assets for the long term.
Aave (AAVE)
After continuing the long downtrend from October 2021 finally, the AAVE weekly chart crossed the baseline of Bollinger Band in January 2023, but it does not suggest a change in momentum. Bollinger Bands lack volatility, and after forming five weekly green candles, it starts turning red, which suggests selling pressure. In the last six months, AAVE/USD has been trading between $50 and $90, and we can observe a sideways movement in the next few months until it crosses the resistance decisively.
Technically RSI is over 50, and MACD is neutral with green histograms that suggest a positive momentum for the short term, but the higher volume and bearish weekly candles suggest a selling pressure. The AAVE/USD price is in a ‘hit or miss’ situation. If it breaks the resistance, AAVE price can be long-term bullish, but if it breaks the support of $50, it will continue the downtrend in 2023.
Loopring (LRC)
After forming five weekly green candles, the LRC/USD price has been in an uptrend, but the Bollinger Band lacks volatility, and $0.55 is a strong resistance for the long term, so we do not think it will cross this level in the next few months. As a result, we can expect a downtrend. Though 2023 will be a volatile year, we could not take a long-term bullish call until it decisively trades over $0.55. The increase in trading volume suggests a time of profit booking. Crypto whales are booking their profits, and it is time to book profit even for retail investors.
However, if you have a deep understanding of the fundamentals of this decentralized blockchain technology and understand the future potential, then you should remain invested for the long term. Our LRC price prediction algorithm suggests a continuation of the downtrend in the next few years for LRC/USD.
Many other altcoins are in this hit-or-miss scenario, so traders have to analyze them carefully and study the fundamentals and future potential before investing for the long term.