One of Binance’s initial exchange offering (IEO) tokens, Matic Network (MATIC), dropped almost 70% on Dec. 10. Meanwhile, other IEOs such as Celer Network (CELR) and Harmony (ONE) also followed suit.

Based on the Ichimoku Cloud, MATIC’s trend now sits in jeopardy as CELR and ONE seem to have lost whatever momentum they were gathering for a potential uptrend.

MATIC dumps taking other IEOs with it

Although the rationale for MATIC’s plunge still remains unclear, Samuel Gosling, the creator of Validity Crypto, a crypto asset assessment platform, sent out a Dec. 9 tweet warning the public that Matic Network had moved 15% of its token supply for a potential liquidation.

Gosling later tweeted a retraction, stating his calculations were incorrect, and that only 3% of MATIC’s tokens looked to have been sold off. This observation, however, contrasts a Dec. 10 blog post from Matic Network that attempted to write off Gosling’s tweet as FUD that contributed to the situation.

Matic Network co-founder Sandeep Nailwal later speculated market manipulation as a cause for the drop on a YouTube appearance.

Additionally, Binance CEO Changpeng Zhao (CZ) said that Binance’s team was investigating the situation, adding that MATIC’s team was not at fault. As of press time, no further updates on the ordeal have come from CZ’s Twitter account.

MATIC fell 69% in a 24-hour period from its high on Dec. 10. On the same day, ONE fell 40% and CELR dropped 21%. Based on their charts, MATIC’s dump seems to have halted any momentum these IEOs were building, at least for now.

Matic Network (MATIC)

MATIC USD daily chart. Source: TradingView

While the cause for MATIC’s dump still remains definitively unknown, the token’s chart does not look all too promising.

MATIC saw a complete Fibonacci retracement on Dec. 10, dropping all the way down to its arguable uptrend starting point. Traders might make the case that the uptrend started slightly lower, meaning MATIC has not yet officially retraced fully, although the chart still does not look too bullish, even from that vantage point.

On a bullish note, the token is currently hovering near a level of prior candle support. MATIC also sits on top of the Ichimoku Cloud as support, with a green future cloud suggesting some bullish potential.

However, on the bearish side, MATIC broke through its 200-day moving average (MA) support, which may now turn into resistance. If cloud support breaks, with candles closing below it, MATIC may fall into further bearish days ahead.

Harmony (ONE)

ONE USD daily chart. Source: TradingView

On Dec. 10, ONE faced a price fall similar to that of MATIC’s although ONE was not riding the same bullish Ichimoku trend seen on MATIC’s chart at the time of the drop.

ONE has closed multiple daily candles below a large red cloud, which is now acting as resistance. The Tenkan (blue line) is still above the Kijun (red line), which is bullish. But the two are very close together. If the price falls further from here, ONE could complete a bearish TK cross, seeing the Tenkan cross below the Kijun once again.

On the bullish side, ONE did not break its all-time low during this drop. The token also saw a decent bounce close to its all-time low, suggesting buyers may still be in the market looking at ONE. Additionally, if the price can close a daily candle inside the cloud, the market may see ONE complete an “edge-to-edge” movement, leading to a test of the top of the cloud around $0.0099.

On the bearish side, if ONE faces further rejection from the cloud, the token could test its lows again. If those lows break, no historical support exists, which could mean a free fall for the price.

Celer Network (CELR)

CELR USD daily chart. Source: TradingView

CELR’s chart looks similar to ONE’s chart as both assets fell out of a red Ichimoku Cloud.

CELR now sees the cloud as resistance after two attempts at re-entry. The Tenkan is also above the Kijun, although the two are slightly more spread out in this case compared to ONE’s chart.

Similar to ONE, if CELR can post a daily candle close inside the cloud, the token could visit upper cloud prices around $0.0079. If CELR can then break through the top of the cloud, it might be able to then backtest it as support, beginning an Ichimoku uptrend from there.

If CELR continues to face rejection from cloud resistance, however, it could be looking to test all-time lows. Below those lows, no historical price action exists as potential support, as is the case for ONE.

Bitcoin will likely decide IEOs’ fate

As the largest asset in its class, Bitcoin (BTC) likely still dictates the direction of the entire market. After several quiet days of price action, crypto’s top asset could be gearing up for a sizeable move, which could, in turn, take the rest of the market with it.

In contrast, if BTC continues its sideways action, it remains unclear where IEO tokens and the rest of the altcoin market are headed. Although, these IEOs seem to have stabilized at consolidation, at least for now.

The views and opinions expressed here are solely those of (@benjaminpirus) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.