With Bitcoin (BTC) perhaps making a local bottom after the recent dump, is now a good time to start taking some positions in altcoins? Are Avalanche (AVAX), Near Protocol (NEAR), and Sei (SEI) good possibilities for decent rallies? Not likely.
Before taking positions in any altcoins right now it is incumbent on all traders to assess in which direction Bitcoin (BTC) is likely to go over the next day or two. At present, it looks as though the $BTC price could be recovering from its recent dip. That said, it is by no means certain that there won’t be further downside in order to shake out the longs that are betting on the recovery.
On a very uncertain trading day the $AVAX price is up around 2.4% so far. That said, it can be seen that the price has stopped short of the $36 horizontal resistance and may be about to start the next corrective impulse. To boot, the price just failed to make a higher high. Even if there is some more upside for $AVAX, taking the trade while the 1-hour and the 4-hour Stochastic RSI indicators are on their way down would be a very risky move.
As it goes, a decent retracement would be back down to the $30 horizontal support level. A stronger bounce would be more likely to occur here. If the price falls through this level, a lower low below $29.40 would be a real note of concern.
The $NEAR price appears to be falling back down after emerging above the $3 resistance level. This was turned into support for a while, but it seems that a lower low may have formed which looks as though it may repel the price back under $3 and turn it into resistance once again. There is still around an hour to go at time of writing in order for the bulls to turn this around and force the price back above the major level. Around $2.80 could be a decent level for a long if a retracement does take place.
The $SEI price is possibly about to be rejected from a small descending trendline. The price is also at a resistance level and so it might be expected that this will indeed end up being a rejection.
The main descending trendline is enormous. It started back in March 2024 and forms the main trendline for the whole of this bull market. Therefore, dipping back below it after making two more lower lows is a very bad sign. For $SEI to have any chance in the longer time frame, the bulls will need to break the main trendline again, push up through the $31 horizontal resistance, and make a higher high. Even for the short-term, $SEI does not look tradeable at present.
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