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Crypto analyst Joao Wedson shared his technical analysis of the altcoin market.
Wedson pointed out that the 2-year moving average (2Y SMA) indicator, frequently used in bear cycles in the cryptocurrency market, is a critical reference point for determining the bottom levels of many crypto assets, specifically the 2Y SMA/2.
According to Wedson, many analysts worldwide follow the 2-year moving average. However, the 2Y SMA/2 level, which is obtained by dividing this average in two, has identified significant bottoming areas for many cryptocurrencies in the past. The analyst noted that this has been observed particularly in major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), BNB, and XRP.
In his analysis, Wedson also made specific assessments of some altcoins, stating that the price of Solana (SOL) has already reached the 2Y SMA/2 level. According to Wedson, Solana’s price reached this level more quickly because it moved sideways for a long time during the last bear market. The analyst reminded that despite Solana rising over 3000% in the previous cycle, it experienced consolidation for about two years.
A different picture emerged for TRON ($TRX). Wedson noted that $TRX is one of the most resilient altcoins in the top 100, and that it reacts differently to bear markets than other cryptocurrencies. According to the analyst, $TRX is still quite far from the 2Y SMA level and needs to fall by approximately 50% from its current price to approach this level.
On the memecoin side, a noteworthy assessment was also shared regarding Dogecoin ($DOGE). Wedson stated that the $DOGE price has reached the 2Y SMA/2 level, indicating that memecoins haven’t seen as strong interest in the last bull cycle as they did in 2021. According to the analyst, $DOGE is currently trading at deep lows.
Cardano ($ADA), on the other hand, showed a weaker outlook. Wedson noted that $ADA has been trading below the 2Y SMA/2 level for several weeks and that the price is hovering near its 2022 lows. According to the analyst, Cardano’s weak performance compared to the market and the limited scalability in the ecosystem have led to a decrease in support for the project.
Commenting on the new project Hyperliquid ($HYPE), Wedson stated that although the project is still very young, a 2-year moving average can be calculated with the available data, and $HYPE is one of the rare projects currently gaining strength in the market.
On the other hand, Wedson noted that the Bitcoin Cash ($BCH) price is currently exactly at the 2Y SMA level, reminding that many crypto assets have retraced to the 2Y SMA/2 level over time. According to the analyst, the market needs to be monitored a little longer to see if $BCH will make a similar move.
Wedson also noted that Chainlink (LINK) price showed a slight reaction after testing the 2Y SMA/2 level, confirming once again that long-term moving averages can act as strong support zones in the crypto market.
*This is not investment advice.