🚨 The market's showing signs of weakness again, and altcoins are flashing warning lights.

While some might still be hopeful, the charts suggest we could be headed for a bigger drop — especially if key support zones fail.

Hey Binance Square fam! 👋

The market's showing signs of weakness again today, and altcoins are flashing a few warning lights as we speak. While some might still be hopeful for a swift recovery in crypto, the charts suggest we could be setting up for a bigger drop — especially if key support zones fail.

Let's break it all down!

Altcoin Dominance Chart Signals Danger

The OTHERS.D chart (which tracks the total market cap of altcoins excluding the top 10) recently failed to penetrate the 0.38 Fibonacci level. This is a classic resistance zone that could spell trouble.

Moreover, bearish divergence is evident on the Awesome Oscillator, indicating waning momentum. Finally, the Awesome Oscillator is sitting at zero, which bodes poorly for further gains.

If this plays out, we can anticipate a -7.5% decline in the altcoin index. However, if bulls manage to step in and prevent a breakdown of current support, perhaps we could see a bullish reversal from here.

5 Major Altcoins Testing Critical Support Levels

Here’s a glance at the latest status of 5 major altcoins and the key levels to watch out for in today's trading.

1. XRP

Current Price: $2.33

Support Zone: $2.10 – $2.15

Next Support Target: $1.95

Shot Term Technical Indicators: RSI oversold; MACD bearish

Summary: A breakdown from current support could quickly carry XRP towards $1.95.

2. Chainlink (LINK)

Current Price: $15.87

Support Zone: $13.50 – $13.80

Next Support: $12.70

Technical Indicators: EMAs forming a crossover for a bearish trend

Summary: Closing price below $13.50 could quickly open the door for further downside on LINK.

3. Solana (SOL)

Current Price: $176.27

Support Zone: $170 – $175

Next Major Support: $155

Technical Indicators: Lower highs are forming, and momentum is slowing.

Summary: A breakdown could drag SOL to $155 or lower from here.

4. Hedera (HBAR)

Current Price: $0.1888

Support Zone: $0.17 – $0.18

Resistance: $0.20

Technical Indicators: Trying to break from a descending trendline

Summary: Caution is needed as HBAR flirts with crucial support. A move below $0.17 could quickly accelerate further downside.

5. Telcoin (TEL)

Current Price: $0.00458

Support Zone: $0.0045 – $0.0047

Next Major Support: $0.0042

Technical Indicators: Deep in oversold territory

Summary: If current support breaks, then expect a swift return to $0.0042 for TEL.

Suggested Trade Setup (For Shorts)

Entry: Current price (as signaled by the chart)

Stop-Loss (SL): 5% above entry price

Take-Profits (TP):

* TP1: 2%

* TP2: 4%

* TP3: 6%

* TP4: 8%

* TP5: 10%

Always perform your own due diligence and follow proper risk management.

Final Words

This isn’t the time to be going all-in blindly, especially not on altcoins. With key support zones at risk and market sentiment shifting, it's best to stay light on trades and capital.

Prepare yourself, stay informed, and trade strategically!