The crypto market is going through a period of turbulence, with bitcoin leading the way for significant corrections for altcoins in April. The outlook for May remains gloomy, with several altcoins at risk of testing new lows amid persistent bearish sentiment.
Altcoins in the storm
The crypto ecosystem is facing a delicate situation. After a disappointing month of April marked by the weakness of bitcoin, altcoins appear particularly exposed.
“ Many altcoins that reversed after hitting highs are heading toward supports near the levels where they initiated their rally“, analysis Mark Johnson, analyst at CryptoResearch.
Macroeconomic headwinds and the recent rejection of an Ethereum ETF by the SEC are amplifying this climate of risk aversion.
In this environment, “ investors are called upon to exercise discernment when dealing with altcoins“, warns Sandra Lee, strategist at CoinFund. Among the most vulnerable cryptos are Bitcoin SV (BSV), Tezos (XTZ), Synthetix (SNX), and Algorand (ALGO).
Crypto, a wave of new lows in sight
Bitcoin SV, which is currently trading around $65, seems to be heading inexorably towards $50, its weakest level since December 2023. Furthermore, Tezos, for its part, is testing a critical support zone at $0.945. A break below this level would expose it to a decline towards $0.87, its 2024 floor.
Despite a support line preserved so far at $2.75, Synthetix remains under pressure and could reach up to $2 in the event of intensified sales. Finally, even if Algorand manages to stay above $0.18 for the moment, it is not impossible that the price reaches a new low between $0.158 and $0.10. Only an excess of $0.185 will protect it, a hypothesis considered unlikely in the short term.
In this depressed market which is struggling to find buoyant elements, all eyes are focused on the Federal Reserve's announcements this Wednesday. Investors will have to deal with heightened volatility in the 24 hours following these declarations.
More globally, ” in the absence of catalysts, negative sentiment risks continuing to weigh down valuations“, summarizes Mark Johnson. The path of the cross for altcoins is far from over.
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