Market Analysis with Rekt Capital – May 8, 2024

Today, 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

Over the past few weeks, we’ve covered ETH in a lot of detail, first talking above how a potential rejection from the blue circled area could see price drop into the orange circled level:

Here is today’s analysis:

ETH indeed dropped into the orange circled level but also rebounded from it.

But ETH hasn’t been able to build on that rebound as of yet.

Still, it is holding the black level here, which is acting as a mid-point to its current orange circle to blue circle range.

Losing black here would probably see ETH revisit the orange circled Range Low but this time, in candle-bodied form instead of the downside wicks we’ve seen produced there over the past few weeks.

ETH needs to continue holding this black level to avoid a scenario where ETH would test the orange circled Range Low and potentially showcase a weakening of it.

Dogecoin — DOGE/USDT

Last week we spoke about how DOGE was in the process of a crucial macro retest:

Price was in the process of retesting both the Macro Downtrend as well as the black Range Low at $0.12.

DOGE successfully retested this confluent area of support:

DOGE has since rebounded almost +23% to the upside, successfully confirming a new Macro Uptrend in the process.

After all, the retest of the Macro Downtrend occurred so that price could confirm that said downtrend is no longer a resistance but now exists as a support.

When a Macro Downtrend get broken and retested as new support, a new Macro Uptrend is confirmed.

Coti — COTI/USDT

COTI has failed to reclaim the orange $0.13 level as support, even though it acted as a strong one back in mid-2021.

Of course, it is possible that COTI could reclaim it in the coming weeks; that isn’t out of the question.

If it does, then that would be a simple price predicament for COTI to rally from $0.13 to the orange resistance box above, over time.

But let’s talk about what if COTI fails to reclaim the orange $0.13 as support and this level continues to act as resistance as it has done for the first week of May thus far.

Rejection here could see COTI tumble down into the current range of $0.08-$0.13 (black-orange).

Of course, last month COTI downside wicked into the black Range Low of $0.08 so if COTI rejects from the $0.13 resistance, then buyers would be lucky to get another chance at the Range Low.

Instead, if COTI continues to drop inside this range, then some sort of Higher Low would be COTI’s priority if it is to establish some bullish momentum in the Range Low area.

As long as COTI remains below the $0.13 orange level, the home for COTI for the coming weeks will be the black-orange range.

Avalanche — AVAX/USDT

Contrary to what COTI is doing (that is, wrestling with a potential new Range High resistance), AVAX is actually successfully retesting a new Range Low support (green $32.66).

In fact, last month AVAX downside wicked into the purple Macro Downtrend to successfully retest it as new support.

Effectively, AVAX has confirmed a new Macro Uptrend in doing so.

And this retest has since prompted AVAX into a sideways move within its new green-red range ($32.66-$47.81).

Continued price-strength confirmation would enable AVAX to revisit the red highs above, over time.

Theta Token — THETA/USDT

Last week, the sentiment was that THETA would successfully Monthly Close above its orange Range Low:

This was confirmed to be true:

The new Monthly Close has set THETA on the path for consolidation between the orange Range Low and orange Range High over time.

At the moment, THETA has formed a new early stage Higher Low (green) support.

This is a positive initial sign for price building a solid base at this Range Low which would enable a move up to revisit the Range High resistance above.

Any dipping and successful retesting in the short-term would serve as additional solidification as THETA prepares for a range-bound move within its current orange-orange range.

VeChain — VET/USDT

Last week, we discussed the possibility of VET consolidating inside the light blue area:

Today’s chart, at least for the moment, confirm this:

In fact, VET has tagged the Range Low of the light blue area and also the Range High, already showcasing typical sideways price action within this historical demand area.

Consolidation will probably persist here but it will be worth watching for when price is ready to reclaim the top of the light blue area as new support as that would prompt price expansion with time.

Kyber Network — KNC/USDT

Last week we spoke about how KNC needed to reclaim the blue Higher Low so as to keep it as support and thus avoid a deeper dip into the Range Low area of the current range:

With the April Monthly Close now in the books, KNC has been able to rescue this Higher Low as support:

As a result of this Monthly Close, a new technical uptrend may be developing here.

If bargain-buyers get lucky, KNC could still offer downside wicking below this blue Higher Low perhaps to tag the black Range Low at $0.50 or maybe even extend into the green boxed area.

It is these downside deviations that are worth paying attention to in the coming weeks because we never truly know how volatile support retests can get (at the blue Higher Low, in this case).

But overall, this new Higher Low is a positive sign in premium-buying behaviour from buyers who are clearly more confident in buying KNC at higher and higher prices.

It is this emerging psychology that will lend itself very positively in building the next macro uptrend over time.