Market Analysis with Rekt Capital – May 15, 2024

In today’s edition of the Wealth Mastery Newsletter, the following cryptocurrencies will be analysed & discussed:

• Ethereum (ETH)
• Dogecoin (DOGE)
• Coti (COTI)
• Avalanche (AVAX)
• Theta Token (THETA)
• VeChain (VET)
• Kyber Network (KNC)

Ethereum — ETH/USD

Ethereum hasn’t been able to break its fall on its current retrace.

A few weeks ago, we spoke about a scenario where it could reject from the blue circled area, which could turn into new resistance:

Here is last week’s analysis:

And lastly, here is today’s analysis:

Ethereum has lost the black level as support and is now getting increasingly close to tapping the Range Low at $2791 (orange circle).

It’s important to emphasis that the previous revisits into the orange circled Range Low occurred via downside wicks whereas now ETH is approaching this level with candle closes.

This just showcases a weakening in the support strength of this region.

Going forward, if ETH rebounds from here to turn the black level into new resistance, then the chances would be very highs of the orange circled level giving way as a support.

Generally, ETH hasn’t lost this red level as support in years so it would be very interesting to see how price reacts to that level.

On the Monthly, it all comes down to one key level:

The light blue psychological level of $3000.

In mid-2021 ETH held this level while downside wicking into the orange circled level before moving higher.

Last month, ETH was able to preserve this level as support but this month it is slinking below it; lots can still change until the end of May which is why it is important that $3000 doesn’t turn into new resistance in the coming week or two, because that could really weigh down on the orange circled support.

Dogecoin — DOGE/USDT

Over the past few weeks, we’ve been discussing DOGE’s Macro Downtrend and the Macro Retest of it as new support:

DOGE has been able to rebound from the Macro Downtrend, successfully retesting it as support, but to move higher it will need to reclaim the green level as support:

That’s the level that is keeping DOGE from rising higher.

Until that green level is reclaimed as support, DOGE will continue to meander, maybe even try to form a new Higher Low.

Coti — COTI/USDT

Last week, we covered COTI on how it could be rejecting from its $0.13 (orange) resistance:

Here’s today’s update:

On the lower timeframes, specifically the Weekly timeframe, COTI has rejected from the orange resistance last week, upside wicking into it and pulling back from there.

In the process, COTI has formed a new Lower High on the Weekly but also is showcasing that the black base of support is what is holding price together at these levels.

So perhaps a Bear Flagging structure may be developing here; a Weekly Close below the base of the pattern could be the first step that validates this structure to make COTI follow the blue path going forward.

Should that Weekly Close indeed occur, turning the base of the pattern into new resistance would be the second confirmation signal of a breakdown.

Avalanche — AVAX/USDT

AVAX continues to hold its Range Low though barely.

There has been a limited rebound from here this month but the support has not been lost.

In fact, despite the weak rebound this month, AVAX is still demonstrating price-strength confirmation at this Range Low support of $32.66 (green).

For as long as that price stability continues, we cannot talk about a support breakdown.

That said, I wouldn’t be surprised to see some downside volatility around these prices, with scope for a downside wick into the purple Macro Downtrend to occur as part of a Macro Retest of that old Downtrend resistance into new Downtrend Support.

Theta Token — THETA/USDT

THETA continues to hold the orange boxed area as a Range Low support, meanwhile also producing an early-stage Higher Low (green).

This is what is necessary for THETA to position itself for future sideways price action via the light blue pathway.

Price-strength stability here is needed and despite the weak reaction for the time being — so far, so good.

VeChain — VET/USDT

VET is threatening to lose the bottom of this light blue box as support, slinking below it slightly.

However, it is inconclusive at this early stage whether VET is actually breaking down or whether it is still retesting the bottom of the light blue box as support but in a more volatile manner, producing a downside wick below it, potentially.

Flipping the bottom of the light blue box into new resistance would likely send VET closer into the black $0.026 level so it is imperative that VET continues to hold current levels to avoid that sort of drawdown.

For the time being, a case can be made for a volatile retest but it’s key that VET doesn’t flip this same level into new resistance in the short-term.

Kyber Network — KNC/USDT

KNC is still holding the blue Higher Low as support, evidencing price stability in the same way that many Altcoins are doing so at their respective key demand areas.

Losing the Higher Low would see price drop into the black Range Low of $0.50, with scope for downside wicking below there even into the green box once again.

That said, the Higher Low is still holding as support.

Signs of flipping into resistance would be a trigger that KNC could still slink lower.

Thank you for reading.

Rekt Capital