“Bearish Signals for Cardano, Algorand, EOS, and Dogecoin in May 2023”

While there is hope that a bullish reversal will begin in June, bearish formations across these four cryptocurrencies warn that the worst may yet be ahead.

Cardano (ADA) Risks Losing Critical Support

ADA is the native token of the Cardano blockchain platform created by Charles Hoskinson. According to the results of the technical analysis, the Cardano rate has been moving along the upward support line since the beginning of the year. At the same time, on April 15, the price reached a new annual high of $0.46. However, since then the price has dropped.

After an initial bounce on May 11 (green icon), the market was in danger of another bearish breakout on May 26. However, another rebound followed.

Since the line has held on the chart for 151 days, its breakout is likely to trigger a significant drop. In this case, the nearest support area will be at $0.30, which is 19% below the current price.

However, if the bounce continues, ADA could start rising towards the $0.45 resistance area.

Relative Strength Index (RSI) readings are mixed. This is a momentum indicator indicating overbought/oversold and bullish/bearish market sentiment, depending on whether it is above or below the 50 mark. In this case, the RSI dropped below 50 (red icon) at the end of April, but it is currently in the process of recovering above that line.

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Algorand (ALGO) falls to new yearly low

SOMETHING is a native token of the Algorand blockchain. The price of ALGO started rebounding earlier this year but failed to overcome the $0.28 resistance area. Instead, it bounced (red icon) and began a sharp fall. The decline brought the token to a new low of $0.15 this year in May 2023.

The price is now approaching the 2020 lows at $0.14. Due to the sharpness of the decline, there are no signs of a bullish reversal at the moment.

The price has formed six consecutive bearish candles with consecutive lower closes, which is an important sign of weakness.

In addition, the weekly RSI is below the 50 mark and is declining, indicating a bearish trend.

Despite this bearish outlook, if the price closes the week above $0.16, it could initiate an upward move towards the next resistance level at $0.21.

EOS risks falling to 2017 lows

Price EOS has been falling since August 2022. In January 2023, it formed a descending high (red icon), creating a descending resistance line in the process. After that, the price fell to the horizontal support area of ​​$0.85.

This is the third price drop to this level in the last 12 months.

Since such lines weaken with each new touch, a bearish breakout of this area seems to be the most likely outcome scenario. This scenario is also supported by the RSI index, which is below 50, is declining and has already made a bearish breakout of its ascending support line.

If the price breaks down, the next support will come into play at $0.45. This level has not been reached by the market since the end of 2017.

However, a vigorous bounce and break of the descending resistance line will invalidate this bearish outlook for EOS. In this case, growth to $1.80 will become possible.

DOGE also joined the bears

The coin of the Dogecoin project is one of the most recognizable “calling cards” of the crypto market and has many fans. Although it appeared in 2013 as a joke coin, many already believe that DOGE has outgrown the status of a mere memcoin.

See also: Dogecoin overtook Ethereum in the number of transactions

The price of DOGE fell after bouncing in October 2022 from the $0.12 horizontal resistance area (red icon). As a result of the decline, the price returned to the ascending support line, which has been present on the chart since June 2022.

Since this line has been holding for such a long period of time, its breakdown could be the catalyst for a sharp fall.

The price returns to this line for the fourth time. Since such lines weaken with each new touch, the most likely outcome seems to be a bearish breakout.

If this happens, the DOGE rate could return to 2022 lows around $0.05.

Meanwhile, a sharp rebound would invalidate this bearish hypothesis and could push the price higher towards the $0.12 resistance area.