Altcoins
Altcoins Bracing for Major 30% Crash, Analyst Issues Serious Warning
Analyst Josh from Crypto World said that right now, a massive warning signal is still flashing on the Bitcoin chart as the price continues to fall from a critical resistance zone. Meanwhile, a new trade setup was revealed on an altcoin chart. Given these developments, and as long as we see net outflows, the market is likely to experience bearish price action in the near term, similar to what we have seen over the past week.
What does Ethereum have in store for us?
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 $3,480. Recently, there was a candle wick up to the 50% retracement level, at around $3,350, which is still strong near-term support. If the price closes below $3,350, we could see a potential decline towards the golden pocket support zone between $3,180 and $3,220. However, for now, $3,350 remains the key support level.
In terms of resistance, $3,650 is a significant level. Ethereum saw a rebound but was rejected from the golden pocket resistance zone between $3,600 and $3,650. This area remains a strong resistance level. If Ethereum can close above $3,450, it could find support there.
What’s next for Solana?
Looking at Solana price, he said it continued its short-term downtrend over the past day with a break below the critical support zone between $140 and $144. The bearish outlook intensified once the price fell below $160, leading to a quick move to the next support level between $140 and $144, exactly as expected. After rebounding from this level, he warned that if the price fell below $140, a rapid decline towards $128 was likely, which indeed occurred.
Now, $140-$144 should be new resistance. Even if Solana breaks above $144, there is still strong resistance at around $160. A break above $160 would be necessary to bring the trend and momentum back higher. Until then, despite brief rebounds, Solana remains in a short-term downtrend.
Chainlink bears in action?
Currently, Chainlink is forming a huge bearish head and shoulders pattern on a 3-day time frame. This pattern will only play if there is a confirmed breakout below the neckline, ideally with a daily, 3-day, or weekly candle close. The neckline costs around $13, and while the left shoulder, head, and right shoulder have formed, the pattern is not confirmed without a breakout below this level. If Chainlink breaks below $13, it sets a bearish price target around $8.20, a potential 36% decline from the breakout point.