A widely followed crypto analyst is warning that several altcoins could soon undergo severe market corrections due to one main factor.
According to Merten, BNB could decline by more than 38% from its current value after dipping below two long-term support levels.
BNB is trading for $211.25 at time of writing, up 1.4% in the past 24 hours.
Next, the trader says that XRP, the token associated with Ripple Lab’s payments platform, is facing downward pressure from a large volume of selling that could cause it to collapse by 70%.
“I think this is going to come down in history as one of the biggest distribution patterns in the history of crypto…
The price action shows it here. There’s more available supply as there’s been more distribution and unloading of previously locked supply on the market. And you can see it here within the price action. And I’m not excited buying something like XRP even as a speculative asset until I come down here and test this line of support [at the $0.15 level].
Even from there, I’m worried that this might have been a long-term distribution pattern where there’s no return in sight back above this level once it breaks.”
XRP is trading for $0.50 at time of writing, up 0.4% in the last 24 hours.
Next, the trader predicts that Ethereum (ETH) rival Cardano will decline by more than 37% from its current value after a bullish triple-bottom price pattern fails to take shape.
“Take a look here at ADA/USD. A lot of people are really excited about Cardano potentially setting in a triple bottom here. But I got to tell you, notice here how as time progresses consistent resistance, weaker relative highs here versus the past. I think this snaps lower. I think this is going down to $0.15.
I’m not here to argue about which projects are good or bad. I’m here to say at the end of the day that the direction, the underlying thing that is going to set the momentum for either direction and price, the broad price performance of financial assets including cryptocurrencies is liquidity and unless liquidity starts to rebound, ADA is likely going lower.”
Cardano is trading for $0.24 at time of writing, down 0.3% in the last 24 hours.
Lastly, the trader says that Ethereum appears stuck in a bearish cycle since April 2023 after failing to hold $2,000 as support.
Ethereum is trading for $1,588 at time of writing, down 0.1% in the last 24 hours.
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