Cloud Hosting

The crypto market is facing its first major drawdown taking place amid the expectation of thespot Bitcoin exchange-traded fund (ETF)in the US. As volatility spikes across the board, top altcoins like Polygon (MATIC), Arbitrum (ARB), and Chainlink (LINK) are shedding, retreating 17%, in a week, 2.5% in the last hour, and 15% in seven days, respectively.

Investors should be eager to dollar-cost average (DCA) into select top altcoins, especially with the bull run anticipated this year. If the Securities and Exchange Commission (SEC) nods to the spot BTC ETF, capital flow into the market will surge tremendously, and back sustainable price increases not only for Bitcoin but also for altcoins.

Navigating the current altcoin depreciation phase necessitates selecting an optimal entry point to maximize investor returns over both short-term and long-term horizons.

This report provides a comprehensive analysis of the top 3 altcoin investment contenders MATIC, ARB, and LINK to identify key value-generating opportunities based on prevailing market conditions and significant events scheduled for the first and second quarters.

Read more:XRP Price Prediction: With Dumping In Full Force, Is This the Dip to Buy Before ETF Approval?

Polygon pricetrades at $0.83 at the time of writing after stretching losses from its recent high of $1.1. The leading Ethereum layer-2 scaling protocol could offer excellent buy-the-dip opportunities especially for previously sidelined investors.

With the token trading slightly below the 0.618 Fibonacci retracement ratio, chances are high for substantial trend reversal. This rebound could also be accentuated by the Relative Strength Index (RSI) oversold condition.

The 0.786 Fibonacci retracement level, at around $0.8, presents a possible entry point. A bullish confirmation signal would be generated by a four-hour candle close above this level, fueling further upside momentum and potentially triggering a breakout targeting to exceed the stubborn $1.1 resistance zone.

Further gains would depend on the approval of the ETF, which will drive more attention to the crypto market leading to a major bull runone that could blastPolygon priceto the all-time high of $2.92.

Arbitrum price left many surprised when it suddenly gained ground significantly above support at $1.3 and went ahead to set a new record high of $2.1. The layer-2 scaling protocol boasting more than $2.3 billion in market capitalisation and $1.3 billion in trading volume, has over the last 24 hours shed 9% to trade at $1.85 on Friday during US business hours.

The ongoing retreat has sent ARB below several key levels including the $2 resistance, the accelerated ascending trendline (dotted), and the 20 Exponential Moving Average (EMA) (in blue).

These levels will weigh down on Arbitrum as long as support becomes elusive. With that in mind, traders would be looking out for rebound opportunities tentatively at the middle trendline, the 50 EMA (in red) at $1.83, and the lower trendline towards $1.6.

If the decline intensifies, Arbitrum price may have no choice but to expand the support scope to the 200 EMA (in purple).

The RSI indicates a bearish bias with downside momentum, potentially targeting the $1.3-$1.4 support zone before a meaningful recovery. DCA into these levels offers risk mitigation and potential return optimization while accumulating Arbitrum, a compelling Ethereum token with strong fundamentals and growth trajectory.

Chainlink (LINK)retreated in tandem with its peers, sliding from its recent highs at $17.66. Bulls also missed out on several opportunities to assert their control like the S/R at $16, the black ascending trendline, and all three applied moving averages, including the 20 EMA, 50 EMA, and 200 EMA.

Although support came up around $14, potentially laying the foundation for a double-bottom pattern reversal, the RSIs downtrend in the neutral area suggests that sellers still hold the reins.

Meanwhile, a trend reversal would be imminent as the RSI closes in on the oversold region. Therefore, looking out for a reversal in this indicator might reveal early signs of a rebound, thus presenting investors with an opportunity to DCA and maximize returns.

Originally posted here:
Top Altcoins To Buy January 5: MATIC, ARB, LINK - CoinGape