The cryptocurrency market experienced a notable uptick in trading volume throughout May, leading to record highs for many altcoins. Over the past month, the global cryptocurrency market capitalization surged by 17%.
However, as June begins, certain altcoins are facing potential declines. Assets like Cardano (ADA), Bitcoin Cash (BCH), Axie Infinity (AXS), and The Sandbox (SAND) have encountered increased bearish sentiment, raising concerns about the possibility of them relinquishing some of their recent gains in the near future.
Bears in Cardano (ADA) Have Leverage
Cardano was trading for $0.44 at the time of writing. Its price has dropped 12% after reaching its peak on May 21 at $0.50.
At the time of publication, the Awesome Oscillator (AO) of the ADA distribution verified the present trend by returning red histogram bars. This indicator shows the current trend of an asset, possible price reversal points, and market momentum.
An asset's short-term momentum decreases more quickly than its long-term momentum when its AO displays red bars. Red bars generally indicate heightened selling pressure and a potential decline in price.
To put things in perspective, since April 1, ADA's AO has only returned red bars, indicating that the market has been dominated by bearish bias for more than 60 days.
Bulls for Bitcoin Cash (BCH) Step Down
In the last ten days, the price of one Bitcoin Cash (BCH) has plummeted by more than 10%. Readings from the coin's Chaikin Money Flow (CMF) demonstrated that this was caused by a spike in capital flight from the market.
Money flow into and out of the BCH market is tracked by this indicator. Traders utilize it to learn more about a trend's strength and direction. When its value is positive and above the zero line, it indicates a strong market. It implies that there is strong purchasing pressure and money entering the market.
Axie Infinity (AXS) Is Predisposed to Suffering More Losses
The largest play-to-earn gaming platform Axie Infinity is powered by the governance token AXS, whose price increased by 11% last month. Nevertheless, AXS may give up some of these gains in the upcoming weeks as a result of its price collapsing below its 20-day Exponential Moving Average (EMA), which indicates an increase in selling pressure.
Because it facilitates tracking the average price of an asset over the previous 20 days, the 20-day EMA is important. The price of an item indicates a change from purchasing to selling when it drops below this important moving average. Trader interpretation of this bearish signal is that it indicates a trend reversal from an upward to a downward trend.
Rising Sell-Offs Are Seen in The Sandbox (SAND)
Sandbox (SAND) is the final altcoin; its short-term average is declining relative to its long-term average, according to the most recent batch of SAND's Moving Average Convergence/Divergence (MACD) indicator data. Market players view this bearish signal as a hint to reduce long positions and enter short ones.
May 2024, Cryptoniteuae