Crypto markets have become unpleasant again after the Fed, especially after the opening of the US markets, Bitcoin is falling. According to yesterday’s statements, there may be further interest rate hikes. On the other hand, investor optimism has been undermined as the dot plot projected upward revisions. But what about altcoins?
As long as the negativity in BTC price continues, it seems that altcoins will also continue to decline. Klaytn (KLAY), which has been experiencing a downward trend for 7 months, is particularly noteworthy. The popular altcoin on Binance entered a steady downward period after its annual peak on February 22.
There is no sign that the reversal of the rise has occurred on a weekly or daily time frame, indicating that the downward movement will continue. The $0.145 region has been a strong support area for KLAY Coin investors since September of last year. The price, which has bounced several times from here, lost its last line of defense in August.
Yesterday and today, the price made deeper lows in the $0.1 region. At the time of writing, the price was at $0.109.
The previous movement before the breakdown indicates that the trend is downward. The reason for this is the completion of an upward A-B-C wave structure. Technical analysts frequently use Elliott Wave theory to identify recurring movements.
If the decline continues, the next nearest support is at $0.051, which is 55% below the current price. This means a new all-time low. While the US markets started the day with a 1% loss, if BTC accelerates its sales, KLAY Coin may become the target of daily traders engaged in short selling.
The Elliott wave count on the daily time frame indicates that the KLAY price is in the fifth and final wave of a downward movement. After the wave is completed, a significant increase is expected. The target here is the more optimistic $0.074 region. If the price fails to bounce in this region, it can possibly drop to the ATL region highlighted just above.
In summary, the current price forecast predicts a 35-55% decline. A break from the decreasing resistance line can reverse the negative scenario, although it is a difficult possibility.