The cryptocurrency market has undergone significant changes in the past 72 hours, particularly due to Bitcoin's sharp price drop from $102K to $94K. This has led to significant liquidations across the market, impacting altcoins.
Impact of the Drop on Virtuals Protocol (VIRTUAL)
VIRTUAL is currently consolidating within a descending triangle pattern, showing a persistent downward trend since reaching an all-time high of $5.14 on January 2. The recent dip has seen VIRTUAL plummet from $4.43 to $3.36, bringing it into a key support zone between $3.18 and $3.42. This zone, previously a resistance level, has now flipped into a robust support.
Strategy and Movement of Stacks (STX)
Stacks (STX) is consolidating within a falling wedge pattern, a bullish structure despite the overall downtrend that started after its peak of $3.02 on December 6. The recent drop pushed STX from $1.85 to its current price of $1.52, positioning it within the crucial support zone between $1.44 and $1.56. Historically, this zone has been a key reversal level.
Critical Levels for Celestia (TIA)
Celestia (TIA) has seen its price tumble from $5.68 to $4.56, bringing it into a critical support zone between $4.25 and $4.74. This zone has historically served as a reliable floor for price reversals.
The future of these three altcoins largely depends on Bitcoin's movement, which is currently trading at a crucial support level of $94K. Should Bitcoin strengthen its position and bounce from this support, it could lead to a market rally, boosting altcoins like VIRTUAL, STX, and TIA.
