Akash Network (AKT): Can it drop another 30%?

Why is the Akash Network (AKT) price suddenly plunging?

The cryptocurrency market spares no altcoin when the trend reverses, and Akash Network (AKT) is currently paying the price. After a failed attempt to break through the major resistance at $0.906, the token suffered a violent retracement. Currently trading around $0.69, the asset is showing a sharp decline, reflecting relentless selling pressure.

Indeed, the 16-hour order block indicates massive selling from smart money. The probability of a local top is now higher than a bullish reversal in the coming months. Consequently, AKT is highly likely to reach the POC at $0.45 in the coming weeks, representing an additional drop of nearly 30%.

Losing this level would send AKT back between $0.33 and $0.29 in the following months. It is therefore absolutely crucial for bulls to defend this $0.54 to $0.45 zone. Nevertheless, a retest of this order block at $0.80 is still possible before the bearish continuation.

If AKT regains momentum alongside a bullish crypto market, breaking this order block at $0.85 would indicate, on the contrary, that a violent rally is brewing.

Furthermore, this correction is accompanied by a drastic drop in trader engagement. The daily trading volume has plummeted by over 32%, signaling a massive withdrawal of capital and heightened investor caution. The project’s market capitalization has also shrunk by 13%, falling back below the $205 million mark.

This bearish movement occurs within a context of cascading liquidations across the market. Capital outflows intensified as soon as critical resistance levels were rejected. Sellers have thus regained control of the order book, forcing buyers to retreat to lower defensive zones.

Can bulls reignite a rally from $0.595?

In terms of technical analysis, the current setup for Akash Network calls for the utmost vigilance. The sharp rejection at $0.906 invalidated hopes for a short term breakout, turning this level into a formidable glass ceiling. In the short term, the support zone at $0.62 could offer a great entry for a scalp on AKT. However, caution is advised, even if the RSI is reaching the oversold territory on LTF.

If momentum indicators like the RSI sink deeper into the oversold zone, it could provide a window of opportunity for a technical bounce. However, the current dynamic remains dominated by the bears. A confirmed breakdown below $0.595 could trigger a new wave of liquidations, plunging the asset toward local lows.

Conversely, a bullish scenario would require a heroic defense of this support by buyers. To hope for a trend reversal and initiate a new rally, the price must imperatively reclaim the $0.83 zone before tackling the fateful $0.906 resistance once again. The battle for price control is only just beginning.

How far can the Akash Network (AKT) drop go?

The technical situation for AKT is at a decisive tipping point. If selling pressure persists and the $0.595 support caves under the weight of sell orders, investors could witness an even more aggressive selloff. The next psychological support levels would then sit much lower, jeopardizing the bullish structure built over recent months.

However, in the crypto ecosystem, capitulation phases often present accumulation opportunities for patient portfolios. If the fundamentals tied to Akash Network’s artificial intelligence and decentralized cloud remain solid, this decline might just be a simple pullback before a new impulse. The upcoming daily closes will be crucial in confirming the market’s direction. Will buyers find the strength to absorb this selling pressure and initiate a massive bounce, or is the asset doomed to explore new depths?

Sources:

• AMBCrypto
• Tradingview

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