2023-08-05 15:30:00
While July started off bullish for the crypto market, the second half of the month was trickier. This is particularly evident in the drop in total market capitalization that followed the July 13 annual high.
Although there is hope for a bullish reversal in August, these four bearish altcoins have a negative outlook. This potentially indicates that the worst is yet to come.
Cardano (ADA) Fall May Accelerate Due to Loss of Support
Cardano (ADA) price has been following an ascending support line since its yearly low of $0.22 on June 10. The increase was rapid and peaked with a high of $0.38 on July 14. This equates to a 72% upward move measured from the yearly low, which is one of the best performers in altcoins.
However, the bearish crypto has since fallen. The decline was catalyzed by a rejection of the $0.36 horizontal resistance zone (red icon), which created a long upper wick.
The reason this rejection is crucial is that it caused a break in the ascending support line on August 1st.
ADA/USDT Source : TradingView
If the decline continues, the next closest support lies at $0.25. This therefore represents a 13% drop from the current price of $0.29. Given that this is the last support zone before $0.15, a breakout of this zone could accelerate the pace of the decline even further.
However, it should be mentioned that Cardano’s latest update, Mithril, is a significant improvement in efficiency. Cardano founder Charles Hoskinson said that Mithril will significantly improve the performance of the blockchain.
BNB Price Risks Channel Breakout
The price of BNB has fallen since hitting a yearly high of $350 on April 16. The downward move led to a low of $220 on June 12. This is a decrease of 37% from the highest level.
Subsequently, BNB price rebounded, validating the $230 horizontal area as support. However, this rebound did not lead to a significant increase.
On the contrary, BNB price has been trading inside a parallel ascending channel, which is considered a bearish pattern. The fact that the price is trading in the lower part of this channel reinforces the possibility of a collapse.
Since the $230 area is very close to the current price, a breakout of the channel will likely lead to a breakout of the $230 area as well. In this case, the price of BNB could fall another 20% and reach the support of $190, thus falling to a new yearly low.
BNB/USDT – Source : TradingView
Despite this bearish forecast for BNB, a strong bounce off the support line of the channel may lead to an increase towards the resistance line at $270.
Theta Network (THETA) price is rejected by its long-term resistance
THETA price has fallen below a descending resistance line since the all-time high of $15.88 reached in April 2021. The line has been in place for 840 days and has catalyzed a 95% price decline.
Most recently, THETA price was rejected on July 24 (red icon). This rejection is worrisome as the price is trading slightly above the $0.60 horizontal support zone. If THETA were to break down from this zone, it could quickly drop to $0.34, which is a 55% drop from the current price.
THETA/USDT – Source : TradingView
However, despite this bearish forecast for THETA price, a break of the descending resistance line will likely lead to a 100% increase, taking the price to $1.50. A godsend for one of the altcoins to which 2023 is not succeeding.
Curve DAO (CRV) in trouble
CRV price has been rising along an ascending support line since November 2022. The support line has caused many bounces so far (green icon).
As a rebound seemed to start on July 31, CRV price quickly crashed, falling to a new yearly low of $0.48. This collapse could have been triggered by fears of liquidation of the loan of the founder of Curve Finance, Michael Egorov.
However, the ensuing bounce caused the price to almost reclaim this ascending support line. A rejection or overshoot of CRV could determine the future direction of the trend.
CRV/USDT – Source : TradingView
A slump will likely result in a 45% drop to $0.33, while a breakout will likely result in an increase to the $0.85 resistance zone, a nearly 50% upside move from the low. current price.
Moral of the story: New bottoms in sight for altcoins?
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
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