The cryptocurrency market has been under significant selling pressure in recent months, with many altcoins struggling to maintain their bullish momentum. Since the November rally, Bitcoin dominance has surged, putting additional bearish pressure on the altcoin market. Notably, Skale and Echelon Prime have experienced sharp corrections, dropping 42% and 53%, respectively, over the past 60 days.
Crypto Market Overview
In recent months, the cryptocurrency market has faced increased selling pressure. This is particularly evident among altcoins, which have struggled to maintain their positions following the November rally. Bitcoin dominance has intensified, leading to additional bearish pressure on altcoins. Two notable cryptocurrencies, Skale and Echelon Prime, have experienced significant price corrections, testing key support levels.
Skale (SKL) Status
The weekly chart for Skale (SKL) reveals a descending triangle pattern, often associated with bearish selling pressure. The uptrend was interrupted on December 2 due to a rejection at the upper trendline around $0.085. Subsequently, SKL has been in a consistent decline, recently testing a critical support zone around $0.034 - $0.037. This area has historically acted as strong support, leading to notable rebounds. If this level holds, SKL may see growth and test the 100-day SMA as resistance.
Echelon Prime (PRIME) Situation
Similar to SKL, Echelon Prime has continued consolidating within a descending triangle. A rejection at $18.43 in early December triggered a steep correction, pushing PRIME down to its current support zone around $6.50. The MACD remains in bearish territory, indicating the possibility of further corrections. However, it shows signs of weakening bearish momentum, suggesting a potential trend reversal if a bullish crossover occurs.
Currently, both SKL and PRIME are testing key support zones, with their future movements largely dependent on the overall market sentiment and the behavior of Ethereum. If ETH continues its recovery, it could provide the necessary momentum for the altcoins to reverse their trends.
