The digital currencies had shown signs of stability between early September and mid-November. However, the drastic plunge began on November 14. Since then, the continuous selling reduced the total market cap of cryptos from above $210 billion on November 14 to around $108 billion on December 11, a decline of nearly 49%.
After such a plunge, market watchers expect a significantly sharp pullback to take place. Nonetheless, the prevailing market conditions indicate that a pullback may not happen any time soon. Some analysts strongly believe that the crypto market will stage a formidable turnaround in 2019.
While the falls have hurt traders’ accounts, cryptocurrency adoption has not slowed down. Recently, the government of the U.S. state of Ohio announced that they are accepting tax payments in form of Bitcoin. Though the markets are way below their all-time highs, more large players are investing in the crypto markets.
The ability of new ICOs and crypto ventures to raise funds prove that interest in this space is still alive and the digital tokens have a bright future.
XLM 4-Hour Chart
The pullback in Stellar failed to breach the nearest resistance of $0.13427050. The inability of the bulls to rise past this psychological barrier proves that the supply is surpassing demand indicating significant selloffs taking place in this market. If the bears maul past the December 7 low of $0.10488320, the plunge could test the next support at the $0.08 zone.
The RSI and the downward moving averages are stuck in the oversold regions. Thus, the path experiencing the least resistance is to the downside. On the other hand, if the bulls defend the $0.10488320 support, the XLM/USD pair might strengthen between $0.10488320 and $0.13427050 for several days. Currently, no bullish setups have appeared so far with the price hovering around $0.114468.
BCH 4-Hour Chart
Bitcoin Cash is yet to find solace in buying support at higher levels. The fall in the recent weeks has been sharp while the pullbacks have been short-lived and weak. The token has traded inside a range for the past three days. An attempt to break down the $94 support failed and the price bounced back slightly currently trading at around $100.
A strong psychological support exists at around $91.78. If the price recovers from the support zone, a pullback is probable to take it to the 20-day EMA levels. It is prudent to wait for the decline to stall before entering this market. Currently, the market has no bullish or positive sentiments.
EOS 4-Hour Chart
After a lengthy downside move, EOS got some buying at the $1.55 region. Over the weekend, the token surged over 16% bringing in some positive sentiments into the market.
In most cases, the pullback after a strong downtrend lasts up to three days. Currently, it is trading at around $1.84 losing almost 8.75% for the day.
If the price slides further, it can retest the $1.5257–$1.55 support zone. If this support breaks, the downtrend will continue. On the other hand, an upward break out of the downtrend line can make the prices to surge to the 20-day EMA as the positive sentiments return to the market. The 20-day EMA will act as a major resistance level.
In the case that the price stays above the downtrend line it could favor the short-term traders who can stay on the long side of the trade. But, the swing traders should wait for the trend to alter its direction before executing long positions.