Despite minor bounces, the technicals foreshadow falling prices over the next weeks and months ahead of the Bitcoin halving.
Nonetheless, we provide guidance on where it may be prudent to DCA for long-term positions in these assets.
Let’s dive in.
Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.
DOT looks ugly right now
- For DOT, price action is currently looking ugly on the 12hr, breaking below the uptrend line.
- There is a local support at $6.50. But if that doesn't hold, we will likely see a fill of the yellow box.
- Beneath the yellow box, we have major horizontal supports at $4.97 and $5.77.
Cryptonary's take
It's possible that in the coming weeks, we will see price move into the yellow box and bounce from that area back up into the $6.80 level before a rejection.And then, from there, we may see a move into the major supports between $4.97 and $5.24.
It’s not yet time to chase SHDW
- We identified the horizontal zone between $0.92 and $1.05 for several weeks now as a key range from which you should DCA. Price has gone to this level and bounced perfectly.
- We now wouldn't chase this as SHDW is still technically in a new, local downtrend.
- If we zoom out slightly and forget today's price bounce, we can also see that SHDW has broken beneath both its uptrend lines. Hence, we will likely see a more meaningful pullback.
Cryptonary's take
SHDW is one we like for the long term.We would not chase this price bounce today.
However, we would look for price to pull back again in the coming weeks.
The $0.92 to $1.05 is a DCA level. However, if price goes back below $0.92, this is where we'd be more aggressive in our DCA buys.
ARB looks destined for lower prices
- One of the first things we take from this is that on the 12hr, 1D and 3D timeframes, ARB put in bearish divergences in overbought territory, which is potentially why we've seen a more meaningful pullback.
- ARB is at a local level of support, with the uptrend line and the horizontal level of $1.82.
- If price can't bounce from the current level, then it's very likely price will lose the uptrend and head lower.
Cryptonary's take
ARB is another coin that looks destined for the yellow boxes.The first/upper box may be good for a bounce play, but the lower box at $1.39 to $1.50 should be prioritised if we're looking to fill long-term buy orders.
Wait for the green light to fill long-term orders on SNX
- SNX is a good example of a play that has filled the yellow box, bounced to the next major resistance and rejected from there.
- SNX will likely fall below the yellow box on this occasion - they never work as well once filled.
- More major horizontal supports are below the yellow box at $2.37 and $2.74. This would be a better range to begin DCA'ing again in the coming months. If we don't get it, we will reassess.
Cryptonary's take
We wouldn't play a move down into the yellow box again (another Long/bid), but we would look to buy again and DCA into the range between the major horizontal supports below between $2.37 and $2.74.This is where we'd feel more comfortable filling long-term orders.
Stay on the sidelines with THOR
- THOR is at a really crucial level here; it is breaking below the uptrend line and the horizontal support of $0.22.
- We will need to see how this battle plays out over the coming days at the $0.22 level.
- What's also relatively concerning here is that the RSI isn't even close to oversold levels, not even on the 12hr and 1D timeframes.
Cryptonary's take
THOR may go meaningfully lower in the coming weeks, particularly if BTC is heading sub $38k.The area of interest to begin DCA'ing into THOR again would be between $0.135 (main horizontal support) and the mid-level of the range at $0.19.
We will be patient and wait for now.
Action points
Remember, we're still 3 to 4 months before the BTC halving, and it's likely things won't get properly going until the end of the summer.Be patient with accumulation, and look at meaningful pullbacks as opportunities.
We're seeing some gems pulling back into really lovely areas for DCA'ing - or beginning to get close to those nice areas to DCA.
Stay patient, stay focused and disciplined over the coming months and build those positions in gems gradually, and you'll reap big rewards when the top of the bull comes around in 10-18 months.
Let's goooooo!!!!!
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