In the early hours of December 10, three coins that have had some of the highest rates of increase throughout November — Matic Network (MATIC), Ravencoin (RVN), and Tezos (XTZ) — were subject to absolutely massive price decreases.
The reasons for this decrease are not entirely clear. In the case of MATIC, the decrease was so unusual that Changpeng Zhao, the chief executive of Binance, assured investors that they were conducting an investigation into whether the decrease was caused by a scheme similar to a pump-and-dump. The network’s co-founder, Sandeep Nailwal, stated that the team has not abandoned the project nor caused the crash.
Matic had NO role to play in all this.
For token movement, We announced the release of ~0.25% (248mn) tokens as Oct unlock, which coincides with aggregated outward movement.
Foundation tokens are still there.https://t.co/BhDDqFWF6H
MATIC will bounce back stronger than ever!
— Matic (@maticnetwork) December 10, 2019
In the case of Tezos, a very large deposit into Binance preceded the price crash. While the initial reasoning was due to staking, a feature released by the exchange last week, this could also have been a whale transferring funds in order to dump the market.
While the reasons remain unclear, the capacity and swiftness of the decrease are clearly visible. Altcoin trader and author @cryptorangutang outlined the decrease for all three and suggested that, in the alt market, you either sell or are left with a losing bag.
I'm sorry, but if you weren't one of the first in the trade, there is no such thing as "investing" at this point of alt market. You either sell it or you are left with this. pic.twitter.com/PvEdtBW7Nm
— #DYORangutang (@cryptorangutang) December 10, 2019
Matic Network (MATIC)
On December 9, the MATIC price was trading near an all-time high of 570 satoshis. The crash began shortly after midnight and the price lost 70 percent of its value inside one hour. It is currently trading 40 percent below the opening prices of the day.
The MATIC price fell below two support areas without experiencing a bounce. However, once it reached the original ascending support line in place since August, the price bounced and created a long lower wick. It is also trading above the 100-day moving average (MA).
While it is likely that the MATIC price continues trading between the two support areas at 230 and 350 satoshis, the swiftness of the decrease makes us believe that trying to predict the movement currently could be futile.
Rather, once the MATIC price settles on a trading range, we will outline the possibilities.
The RVN price reached a high of 451 satoshis on December 8. The price decreased gradually until midnight when the rate of decrease accelerated greatly. The price decreased by roughly 30 percent in two hours, reaching the 300 satoshi support level. This has been the level that previously initiated two upward moves.
Currently, the Ravencoin price is possibly trading in a range between 300 and 460 satoshis. A more precise range is found between 340-380 satoshis. The support area is also strengthened by the 100-day MA. While the price briefly decreased below it, it bounced upward and has now found support above the MA.
The XTZ price was subject to the smallest price decrease. However, over the past three days, it has been creating an evening star pattern. This would be confirmed by a daily close below 1900 satoshis.
Also, the Tezos price has possibly finished a five-wave Elliot formation. While the decrease has not been as pronounced as the other two, it has the potential to continue further downward.
There is a bearish divergence in both the RSI and the MACD that supports this movement. The Tezos price could decrease towards 1400 satoshis, possibly completing an A-B-C correction.
To conclude, the prices of three significant altcoins that have increased substantially in November were subject to a crash. While the reasons for the crash remain unclear, the medium-term outlook for all three looks grim.
Images courtesy of Twitter, TradingView.
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Source: Be In Crypto