In today’s edition, the following cryptocurrencies will be analysed & discussed:
- Vanar Chain (VANRY)
- Injective (INJ)
- Ethereum (ETH)
- Avalanche (AVAX)
- Kadena (KDA)
- Based Brett (BRETT)
Vanar Chain — VANRY/USDT
Since the market-wide crash, VANRY is showing initial signs of potentially developing this Falling Wedge-like market structure.
This still needs to be monitored closely as the Lower Low has just formed and it’s not clear if this indeed will be the base of the pattern, especially if the $0.886 blue level were to turn into resistance for example.
However, VANRY is positioning itself for a retest of the blue $0.886 level again and a successful retest here would probably see VANRY challenge the multi-month downtrend (blue) for a potential breakout attempt.
Reject at the blue $0.886 level as resistance however and that Lower Low could be tested to check if it indeed will act as the base of the pattern going forward.
VANRY needs the Weekly Close above the blue level, just like the one it performed three weeks ago, in order to confirm further upside from here.
Injective — INJ/USDT
Over the past few weeks, INJ followed through on its green path to produce an over +25% move to the upside:
Here is last week’s update for further context:
In the end, INJ failed to Weekly Close higher and indeed dropped further down the range:
In fact, INJ dropped below the $18.o2 Range Low (black), Weekly Closing below it to potentially set this level up for a flip into new resistance so as to follow the red path over time.
Really important this $18.02 level doesn’t flip into new support otherwise downside could be on the cards for INJ.
More, INJ also formed a new Lower Low in the process but the RSI continues to maintain its Higher Low; in fact, the RSI continues to maintain its general triangular market structure.
The RSI would need to lose its Higher Low for INJ to demonstrate further downside in its price action; until then, the Bullish Divergence continues to stay intact.
It’s not clear however when this Bull Div will activate; technically it has been forming since July and developing with each Lower Low in price action and each Higher Low in the RSI.
As long as these series continue, then the Bull Div is bound to play out over time.
It’s just unclear when exactly at this time.
Ethereum — ETH/USD
It looks like last week’s candle for ETH simply turned the CME Gap (red circle) into resistance, without really filling it fully.
Since losing the light blue triangular market structure, failure to reclaim the base of it around ~$2900 was always going to run the risk of it flipping into new resistance.
While the base of the structure itself didn’t turn into new resistance, the CME Gap occupying the space just below it did.
As a result, ETH could drop into the black level over time where a cluster of historical demand once existed.
Avalanche — AVAX/USDT
AVAX has been consistently retesting the purple Macro Downtrend as new support for three full months now, now starting its 4th consecutive month.
This past August, AVAX downside deviated below the Macro Downtrend quite considerably but still managed to Monthly Close above it to preserve it as support.
The problem with this Macro Downtrend is that it…
Rekt Capital is a cryptocurrency analyst with over 300,000 Followers on Twitter and is the author of a Top 4 Crypto newsletter on Substack globally (Rekt Capital Newsletter).
His market commentary and research has been featured in Forbes, CoinTelegraph, Real Vision, Hackernoon, and Medium’s largest publication The Startup.
