In recent days, the crypto market has experienced a sharp sell-off, causing major cryptocurrencies to lose value. This extended correction phase presents potential dip opportunities for astute traders. Among the top three cryptocurrencies forecasted to rebound soon are XRP, Chainlink (LINK), and Cardano (ADA).
XRP has faced a significant decline over the last month, dropping to a crucial support zone at $0.432 – $0.42. Despite this, the current retracement follows a well-known bullish continuation pattern known as the ‘Flag.’ At the time of writing, XRP trades at $0.425, attempting to uphold the pattern’s lower trendline while hovering in the $0.43 – $0.42 zone. If the coin price rebounds from this level and breaks through the overhead trendline resistance, a bullish recovery is likely, with XRP potentially revisiting its previous $0.55 high.
Chainlink (LINK) experienced a bearish breakdown from its neckline support on May 8th due to the influence of the head and shoulder pattern. This reversal has amplified the selling pressure on LINK’s price, which currently trades at $6.5 with an intraday loss of 1.17%. If selling pressure persists, a 16% decline could push Chainlink to revisit the $5.5 – $5.4 support zone, an area that has previously acted as a crucial accumulation point for the cryptocurrency.
Cardano (ADA), on the other hand, has shown a trend shift according to the Dow Theory. This altcoin has transitioned from lower lows and lower highs to higher highs and higher lows. The rising ADA price is evidenced by a new support trendline, bolstering the ongoing recovery rally. Trading at $0.36 at the time of writing, Cardano is currently retesting this support trendline. If the coin’s price remains above it, buyers could seize an entry opportunity, sparking a fresh recovery rally for the coin.
Despite the turmoil in the crypto market, these three cryptocurrencies still show promising signs of a potential recovery. However, this analysis and subsequent predictions are subject to market conditions and should be taken in the context of personal market research. Experts advise against relying solely on one source of information when making investment decisions, as neither the author nor the publication can guarantee personal financial success in the volatile world of cryptocurrencies.
Source: Coingape
