Altcoins
3 Altcoins Set to Drop Below Key Support Levels Amid Strong Selling Pressure
- Bitcoin collapses below key support, dragging altcoins down.
- Ethereum struggles to find support after initial ETF hype fizzles out.
- Solana and BNB face crucial tests as overall market sentiment weakens.
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The cryptocurrency market continues its unstoppable slide, with major coins like those plummeting sharply since yesterday. High trading volume has accompanied these losses, as key support levels have been broken across the board.
Bitcoin, in particular, suffered a brutal crash today. The daily candle closed firmly below the critical $60,000 support zone, a level that has held steady since March. This aggressive crash in the leading cryptocurrency raises serious questions about where buyers will find their next line in the sand.
The pain extends beyond Bitcoin. , , and , all major altcoins with significant market caps, have fallen along with their leader. However, these altcoins are historically known for their higher volatility, which could also translate into faster recoveries. Identifying new support levels for these altcoins becomes even more critical in this environment as they attempt to regain their foothold.
1. Ethereum Pulls Back After Initial Surge in ETF Approvals
Ethereum gave back its gains after the ETF approval announcement. The cryptocurrency initially surged more than 25% after the SEC opened the door to spot ETFs in May. However, the prolonged uncertainty surrounding the ETF process, coupled with an overall market decline, has weakened demand for ETH, causing it to fall below the key $3,380 support level last week.
Since yesterday, strong selling pressure has pushed Ethereum below its next support level at $3,260 (Fib 0.618) as volume selling has increased. The daily outlook now shows a gap to the $3,090 average, which is the last critical support zone to prevent further declines. A loss of support just below $3,100 (Fib 0.786) could reinforce the sell signal indicated by the EMA values.
Despite the bearish trend, it is worth monitoring the Stochastic RSI for a potential trend reversal. Currently, the Stochastic RSI is rapidly falling, which suggests that the bearish momentum could continue. However, if Ethereum attracts new buyers around $3,100, it could challenge the resistance at $3,265. A break of this resistance would signal a recovery in ETH and a breakout from the short-term bearish trend. Otherwise, Ethereum could retreat further to $2,865, a demand zone highlighted during the April-May period, on daily closes below $3,100.
2. Solana approaches support level
Solana (SOL) has seen a strong bullish performance from October 2023 to March this year, riding the overall recovery trend. However, over the past three months, the cryptocurrency has lost momentum and entered a consolidation phase. Despite this, SOL has shown more resilience than Bitcoin, which recently fell below its consolidation zone. 
Solana has found support in the $125-$130 range on average, maintaining this horizontal outlook with the lowest peaks since April. Last week, SOL briefly bounced to $150, but a sell-off pushed it back towards the major support zone, which corresponds to the 0.382 Fibonacci retracement level of the recent uptrend.
If SOL closes below $130 this week, it could trigger a pullback towards the $110 region. Conversely, if the current selling pressure eases, SOL could find support around $130, potentially setting the stage for a breakout of the downtrend line and anticipating a fresh bounce. In a possible recovery, reaching the $160 region could end the lower peak formation and rapidly increase the upside momentum. However, daily closes below $130 present a significant risk to SOL.
3. BNB: Key Support Levels to Watch Amid Bearish Outlook
BNB rebounded in June but has struggled to maintain its gains amid a sideways bearish trend since March. In early June, BNB tested the $700 region, influenced by its use on the Binance exchange. However, persistent selling pressure and the suspension of token supplies on Binance have negatively impacted demand for BNB.
Currently, BNB is moving rapidly towards the lower band of its channel, with $520 identified as the critical support level this week. A clear daily close below this level could confirm a downside breakout of the channel, potentially extending the decline to $450 based on Fibonacci retracement levels. Conversely, if BNB finds support around $520, it could target $550 and then $580, aligning with the upper band of the channel.
All eyes on US employment data
Cryptocurrency markets have faced significant selling pressure this week, partly due to Mt. Gox-related selling. Additionally, tomorrow’s U.S. jobs data release is a significant stressor. Yesterday’s ADP, , and PMI numbers were below expectations, providing some support to risk markets. This has fueled speculation that the Fed could cut interest rates in September, with tomorrow’s data now in focus.
Recent inconsistencies between Nonfarm Employment data and other employment indicators have increased uncertainty among market participants. As a result, upcoming U.S. macroeconomic data has the potential to increase volatility in the cryptocurrency market.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, an offer, advice, consultancy or a recommendation to invest, as it is not intended to encourage in any way the purchase of assets. I would like to remind you that any type of asset is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remain with the investor.