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These top three weekly gainers risk a massive collapse if this happens

  • The crypto market may appear to be in recovery but is actually still facing more possible contagion.
  • Top cryptocurrencies such as Bitcoin, Ethereum and Cardano are nearing their recent lows, risking further drawdown.
  • Consequently, even some of the week's best performers - Chiliz, Lido DAO and Uniswap could face a pullback.

The FTX collapse wiped out more than $250 billion from the crypto market, bringing the total capitalization to $781 billion. As a result, Bitcoin, Ethereum and altcoins faced a massive sell-off. However, as more investors became aware of the exchange’s implosion, the markets found support and kick-started an uptrend.

Some altcoins saw a larger influx of capital or momentum, resulting in explosive rallies. While these gains can be alluring and additive, investors need to be careful as the big crypto posts an uber-bearish picture that could undo these gains quickly.

Chiliz price could be heading for a breakout

Chiliz price rose by more than 50% over the last seven days to trade at $0.223. This rise enabled CHZ to retest its resistance level at $0.233, which has not been breached in the last 24 hours. Moving between $0.213 and $0.233, CHZ could be looking at a sideways movement over the next few days.

If a bullish move follows, Chiliz price could flip the immediate resistance into support and head to tag the critical resistance at $0.256. If the buying pressure is maintained over the next few days, CHZ could end up in the overbought zone, resulting in mild corrections.

CHZUSD 4-hour chart

CHZUSD 4-hour chart

However, in the event that Chiliz price fails to breach $0.233 and dips, it would test the immediate support at $0.213. A breakdown from this level could result in CHZ testing the uptrend line as support. But any further drawdown would see Chiliz reaching $0.197 and $0.180 for support. If Chiliz were to fall below $0.180, the bullish thesis would be invalidated.

Lido DAO price needs a lot of support

Lido DAO price, whilst not observing a rise as significant as Chiliz, still managed to recover 34% of its recent losses. Trading at $1.22, LDO is currently indicating no clear direction as it is not only making gradual gains but is also vulnerable to corrections.

If buyers keep their activity focused on the altcoin, Lido DAO price could continue its rise and tag the immediate resistance at $1.32. The cryptocurrency does face an inefficiency within the $1.37 and $1.49 range, labeled as the Fair Value Gap (FVG), which could act as a solid resistance for LDO. 

LDOUSDT 4-hour chart

LDOUSDT 4-hour chart

On the other hand, if buyers pull back and Lido DAO price declines, it could slip to $1.15. This is the immediate support level, and losing it would bring LDO to $1.07.  A daily candlestick close below it will push the price lower to tag the critical support of $0.99, invalidating the optimistic outlook.

Uniswap price is already on the way down

Uniswap price noted a decent recovery of 31% before sliding in the last 48 hours to trade at $5.80. Unlike the cryptocurrencies mentioned above, UNI has already lost a critical support level - the uptrend line and is right above its immediate support of $5.75.

If miraculously, Uniswap price bounces off the support level and retraces its steps back up, it could tag the $6.14 resistance level. Breaching that would be critical as it would also flip the 30 and 50-day Exponential Moving Averages (EMA) into support. Further bullish support would see UNI testing the critical resistance at $6.40.

UNIUSD 4-hour chart

UNIUSD 4-hour chart

But, if the broader market cues fall in favor of the bears, Uniswap price could slip to $5.75. Losing this support floor would lead to UNI declining toward $5.43, which stands as the critical support level. Any further drawdown from $5.43 would invalidate the bullish thesis and could initiate a freefall for Uniswap, which will prove to be very harmful to UNI holders.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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