The bulls appear to be gaining traction in the cryptocurrency market, with some speculating that a bull run may be imminent. According to CoinGecko, the total market capitalization of all cryptocurrencies has remained around $845 billion over the past 24 hours, still below the $1 trillion mark.
However, the market has been largely influenced by a recent increase in US consumer confidence, leading to a decline in the value of many cryptocurrencies.
YouTube influencer Pizzino has warned his 279,000 followers in a new video that the cryptocurrency Polygon (MATIC) could potentially drop by 30% from its current price of $0.798 if it falls below a key support level in the near future. MATIC has remained stable between $0.70 and $1.00, but recent lower peaks on its weekly chart suggest a minor breakdown may be occurring.
If Pizzino were to trade this cryptocurrency, he would reportedly set stop orders below the $0.70 mark, which could potentially cause the price to fall to the range of $0.30 to $0.40. However, Pizzino advises caution and notes that if these lows are broken, MATIC may return to the $0.50s or $0.60s.
According to him, the cryptocurrency Solana, an alternative to Ethereum (ETH), may drop to $8 to $9 due to its inability to fully recover from a recent dip on the FTX exchange.
Solana will enter a risky period with potentially low returns if the market can hold at its current levels of around $12 to $14. At present, the cryptocurrency appears to be attempting to test its $11 support level. While a swift bounce after the FTX incident could have brought Solana above the $25 mark, it seems likely to fall again in the near future.
So if $11 is taken out now. It will be down 95%-96% from its all-time high. Dropping back to those earlier levels, between $8 and $9, would result in a loss of around 97%.
At this writing, the price of a share of Solana is $12.19.
According to Pizzino, the cryptocurrency ADA is expected to drop to around $0.20 before finding support. He suggests focusing on the range of $0.10 to $0.20 for this cryptocurrency. It is unclear whether a bottom pattern will form and lead to an upward breakout in the future.
Many of these cryptocurrencies may take a long time to recover and may test past resistance levels on linear charts before showing signs of a bear market downturn on logarithmic charts. Currently, ADA is in a state of limbo, and Pizzino warns that there may be a significant amount of difficulty in the coming weeks and months
The price of ADA is $0.255 at the time of writing.