The crypto market has been all red. This has been the trend for the last couple of days. Although the drop has been moderate, most digital assets are trading just above key supports and are at risk of an extended plunge. One prominent analyst believes that the worst isn’t over and a couple of coins will see a further drop before finding meaningful support.
The Higher The Rally, The Deeper The Drop
Popular analysts ‘The Wolf Of All Streets who goes by Twitter handle, @scottmelkel, has been warning that a number of coins could be headed deep under. He notes that the coins that had the highest gains are the same that were overbought. They will be crashing hard as they struggle to find support.
Remember – the assets that are overbought and have had the largest recent gains are the ones that have the furthest to fall before finding meaningful support.
— The Wolf Of All Streets (@scottmelker) February 25, 2020
He does not specify which coins these are. But a number of altcoins have recently recorded astronomical gains. Most popular include Binance (BNB), Ethereum (ETH), and Tezos (XTZ) which have recorded gains of over 100% since January.
Specifically for Ethereum, we recently reported that an overbought signal flashed. This meant that the asset could face a major bearish phase if unable to break the next key resistances. At the time, the Ethereum was looking to break above $290, since failing, it has retraced to the $240 position.
Stops approaching. Today is not the day to be trading alts. https://t.co/axSJB7Vqxg
— The Wolf Of All Streets (@scottmelker) February 25,