Market Analysis with Rekt Capital – May 22, 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

What a difference a week makes.

Ethereum has performed a phenomenal rally, closely following history in the sense of forming a bottom near the orange circled area much like in mid-2021 before reversing.

In mid-2021 upon reversal, Ethereum needed a Weekly Close above the orange box top followed by a retest in order to continue higher.

While a retest of the blue circle would be healthy on this run, the catalyst is a strong run and so price may not need such a retrace to continue moving higher.

It will continue to be a point of interest just in case, nonetheless.

Generally however, the goal for ETH is to revisit the green $3956 resistance and perform a Weekly Close above it to set itself up for a retest of the green level, much like it did back in late 2021 (green circle).

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:

Since then, the Macro Downtrend Retest has been successful but we also discussed how DOGE needed to reclaim the green level to move higher and build on that newfound momentum:

Here’s today’s update:

DOGE has pressed beyond this green level and any dips into the green level, if at all, would serve in building out a base at these current prices in preparation for further upside.

Coti — COTI/USDT

Last week, we discussed the requirements COTI needed to fulfil when it comes to confirming a bearish bias, specifically focusing on a Weekly Close below the black pattern followed by a test of that same level into new resistance:

This confirmation was never achieved:

Because COTI protected the pattern and Weekly Closed above it; in fact, COTI broke out from the pattern, invalidating the blue path.

To fully confirm its new found bullish momentum, COTI will need to reclaim the orange level as new support:

Why is this important?

Because of the Monthly timeframe:

In mid 2021, COTI downside wicked below the orange level before reversing up.

In this cycle, COTI actually Monthly Closed below the orange level, potentially setting itself up for a rejection from orange, to turn it into new resistance.

COTI has made its way back above this orange level but it needs to turn it into new support, should a dip emerge, so that COTI can continue its run from here.

Avalanche — AVAX/USDT

Last week, stability was the name of the game.

Here is last week’s analysis:

Here’s today’s update:

AVAX rebounded +25% from the green Range Low support, after successfully holding it last week.

What’s next?

AVAX has a chance at further upside and here is the condition:

AVAX needs to Monthly Close above the light blue level (a Weekly Close would be sufficient as well).

Because this would set AVAX up for a retest of the blue level which is necessary to predispose price to further upside from light blue level to the red Range High at $47.81.

Theta Token — THETA/USDT

Much like with AVAX, the name of the game was price-stability at a key support and patience to wait for the market to offer additional price action with time:

Here’s today’s update:

THETA has rebounded +26% since, following the light blue pathway perfectly thus far.

To move higher across the orange-orange macro range, THETA may need to dip slightly on the weekly timeframe to confirm that further upside going forward:

THETA needs to retest the light blue level to continue progressing via the light blue path.

Any dips into the light blue level would mimic the early 2022 price action (green circle) to essentially solidify support there.

VeChain — VET/USDT

As a preface to today’s analysis, here is last week’s chart and commentary:

Here’s today’s update:

VET has managed to protect the bottom of the light blue box, performing a slightly volatile retest in the process.

The bounce has been technically promising as it has protected a key support but to build on this move, VET would need to reclaim the top of the light blue box as support, as per the black pathway.

Kyber Network — KNC/USDT

Our final Altcoin of today is KNC and once again, the recurring theme of price stability was a crucial technical feat that needed to be achieved for KNC and many other Altcoins as well:

Here’s today’s update:

KNC has bounced +12% from the Higher Low.

This is positive for the trend because for as long as this Higher Low holds, KNC will be positioned to revisit the black Range High over time, with scope for upside deviation to as high as the red box above.

Of course, Monthly Closing above either of those levels (black or red) would actually mean that KNC is ready to move higher — but that’s a story for another day.

Thank you for reading.

Rekt Capital