DataDash server and crypto analyst Nicholas Merten made a new analysis. In his analysis, Merten compiled price predictions for Solana and 2 altcoins. Accordingly, the cryptocurrency expert said that signal weakness is coming for SOL, ETH and ADA. Accordingly, it is possible that the aforementioned cryptocurrencies will lose value in the near future. The analyst expects sharp price drops for these cryptocurrencies.
Expressing his views in a new video, Merten spoke to 513,000 YouTube subscribers. The analyst drew attention to the 200-day moving average on the Bitcoin (BTC) price chart. According to him, this indicator was a buying opportunity at a full bottom in the last bull cycle. But now in the bear market, it is acting as resistance for several altcoins. For this reason, the analyst forecasts drastic declines for several altcoins, including Solana. According to him, these declines will bring along a long period of accumulation.
“Ethereum price turns 200-day MA into resistance”
Merten said that since Ethereum’s price drop in September, the 200-day moving average has not acted as a support indicator. For ETH, the largest altcoin asset in the market, this indicator acts as a resistance line. The analyst said:
“Usually, the 200-day moving average is the point at which it’s time to buy stocks and move up. But we’re in a bear market right now, and what we’re starting to see is something else. I think most of these altcoins that are in the overbought zone are now starting to show resistance around this moving average. Therefore, we may see sharp declines.”
“Cardano may also lose value due to the same indicator”
As we reported as Kriptokoin.com, stocks and crypto money prices started to fall again in October. Since then, Cardano has marked the 200-day moving average as resistance and moved accordingly. “Sometimes we get deviations above that, but it doesn’t hold up,” says Merten. It signals a retracement below the 200-day MA each time. However, the analyst does not have a negative outlook for the ADA price in the long run:
“I’m basically not negative about Cardano as a project. I’m just stating that the price action is telling me not to rush. I want to average the cost in dollars or buy at the bottom. However, I should set my expectations lower here, potentially looking at this previous range. Maybe I should be patient for it to fall into a lower price range. We will have to wait and see developments for the ADA price.”
“Solana may not recover for years after the collapse”
Merten also shares his expectations for Solana (SOL). According to him, the SOL risks falling to a previous support range. If this happens, the altcoin will experience a very long collapse. Even the current levels, which are so low compared to the November 2021 peak, will be a dream. At this point, the analyst said it could “potentially take years” to reach the current Solana price. Then, ETH, SOL, and ADA finished his fall thesis with these words:
“Again, I’m not the one to tell you exactly where things are going. I am not here as a priest. My key point involves stating our standards. Also, I share this with you when I think a drop is coming for an altcoin. Thus, we are careful about assets that are likely to decline in price.”
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