Closely followed crypto analyst and trader Nicholas Merten shared that he expects an altcoin drop among the top 5. It is on the red list in new projects such as Worldcoin (WLD).
Nicholas Merten says some altcoins will be ‘hard hit’
The leading trader with 511,000 Youtube subscribers says Binance Coin (BNB) could face a heavy correction if it loses a critical support level. In his current analysis, he talked about a scenario where the BNB price would depreciate by over 80%:
BNB price is barely swinging at the 200 moving average. It is currently sitting just above the support level [about $180] held since February 2021. If this level is broken, the remaining levels from September 2017 and March 2020 are next. These are very critical lows for BNB. Then we head into the area where no one expected until it easily came in around $45 to $40.
Returning to Bitcoin (BTC), Merten said that if the leading crypto fails to rise above the current resistance level, the bear market could last longer than expected. The analyst points to the 32,000 – 36,000 region as critical resistance levels. He also interprets the fact that it has not yet moved away from the $28,000 and $27,000 supports as a sign of ‘insufficient strength’.
XRP
Finally, looking at the XRP chart, the analyst mentioned that the gains brought by the SEC victory of July 13 can be returned. The XRP price has gained over 90% on this date. Mertan now expects around 50% correction:
The recent rise is not an optimistic price action. We are very close to turning red on the daily chart. It made a big move of 72 percent and then stagnated. More like a ‘buy the news, sell the news’ thing? In this case, essentially, the hype was already priced in, and now it’s time to sell the news.
ApeCoin (APE) shows a bearish trend in on-chain metrics
The other altcoin on the red list, ApeCoin, has been experiencing intense selling pressure lately. Also, on-chain metrics have been bearish this week. This indicates that a further decline in APE price is likely.
On-chain metrics such as daily active addresses, social dominance and supply on exchanges showed a bearish trend for APE this week. According to data from Santiment, the total number of daily active addresses on the APE network in a 24-hour timeframe has halved this week. The number of active addresses on Monday dropped from 2,032 to 1,051 at the time of this writing.
It also showed a steady decline in social dominance, a metric that measures mention of a project among market participants on social media platforms like X (Twitter). This decline indicates that investors are most likely losing interest in the project. This is considered a bearish signal for the metaverse coin.
Investors prepare to sell APE
Supporting the bearish thesis presented by the two metrics above, the token’s supply on exchanges has increased steadily since Monday this week. The supply of APE on exchanges has increased from 28.62 million to 29.14 million recently. Typically, an increase in a token’s supply on exchanges increases selling pressure on the price. This causes additional price reductions.
ApeCoin is struggling to make a comeback after dropping below the $3.3 level on June 5. The altcoin tried to recover throughout July, but its efforts were unsuccessful. At the time of writing, it is trading in the $1.97 region, where it lost 2.5% on the day.
Santiment warns about this emerging altcoin
The analytics firm has confirmed that Worldcoin (WLD), which debuted on July 24, has garnered a lot of attention. However, “fraud” and privacy concerns overshadowed the launch. According to Santiment, negative talk about Worldcoin causes Fud on crypto projects. The following implications are included in the analysis:
Worldcoin is one of the trending topics on Twitter, Reddit, Discord, Telegram and 4chan following the launch of the new coin. WLD sees negativity so far, which is a reflection of the crowd’s FUD towards crypto in general (fear, uncertainty, and suspicion).
Worldcoin uses iris scans with physical hardware called “Orbs” to create unique digital identities. The next-generation altcoin project is powered by OpenAI’s Sam Altman. The project has recently transitioned to Ethereum’s layer 2 solution Optimism (OP). It is currently trading slightly lower at $2.19.
Dogecoin (DOGE)
Finally, Santiment emphasized that the recent rally of Dogecoin (DOGE) has brought profits to most of its investors. The increase comes amid expectations that Elon Musk will integrate DOGE payments into his new time app X. As Kriptokoin.com, we have included the details of the hot development in this article. Santiment interprets the latest developments as follows:
The price of Dogecoin has increased by 25% in the last two weeks and it is attracting more and more attention from meme coin investors. A major milestone was also achieved in this run, with the average DOGE investors active last year now making money.
DOGE is currently trading at $0.07666, down 2.5% from the last 24 hours. It is leading the altcoin market gains, keeping its weekly gains above 5%.
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