Altcoins
Altcoins are preparing for a major 30% collapse, analyst issues grave warning
Crypto World Analyst Josh said that at this moment, a huge warning signal is still flashing on the Bitcoin chart, with the price continuing to fall from a critical resistance area. Meanwhile, a new trading setup has been revealed on an altcoin chart. Considering these developments, and as long as net outflows are observed, the market is likely to experience short-term bearish price action, similar to what we observed last week.
What’s in store for Ethereum?
He took a quick look at Ethereum on the daily time frame, noting that ETH price is currently trading below the 38.2% Fibonacci support level, which was around $3480. Recently, there has been a candle wick up to the 50% retracement level at around $3,350, which is still providing strong short-term support. If the price closes below $3,350, we could see a potential move towards the golden pocket support area between $3,180 and $3,220. However, for now, $3,350 remains the key support level.
In terms of resistance, $3650 is a significant level. Ethereum saw a rebound, but was rejected by the golden pocket resistance area between $3600 and $3650. This area remains a strong resistance level. If Ethereum manages to close above $3450, it could find support at that level.
What is the future of Solana?
Looking at the price of Solana, he said that it continued its short-term bearish trend over the past day with a break below the critical support area between $140 and $144. The bearish outlook intensified once the price fell below $160, which led to a quick move to the next support level at $140-144, exactly as expected. After bouncing from that level, he warned that if the price fell below $140, a rapid move down to around $128 was likely, which indeed happened.
Now, the $140-144 level is expected to act as new resistance. Even if Solana breaks above $144, there is still strong resistance around $160. A breakout above $160 would be necessary to bring the trend and momentum back to the upside. Until then, despite a few brief rallies, Solana remains in a short-term downtrend.
Chainlink bears in action?
Currently, Chainlink is forming a massive bearish head and shoulders pattern over 3 days. This pattern will only come into play if there is a confirmed break below the neckline, ideally with a daily, 3-day or weekly candle close. The neckline is around $13, and although the left shoulder, head and right shoulder have formed, the pattern is not confirmed without a break below this level. If Chainlink breaks below $13, set a downside price target around $8.20, a potential 36% downside move from the breakdown point.