According to crypto analyst David, Cardano created a fake break above a key resistance level. That’s why the analyst says ADA will likely continue to decline in the near future. The analyst, nicknamed TheMoonCarl, suggests that the next target for the leading altcoin is $1,500. Finally, analyst Filip L expects Binance Coin to lose some weight.
Will Cardano’s bearish trend continue?
Cardano (ADA) has fallen below this level since it broke below the 20-week MA on November 15, 2021. During this time, it hit as low as $0.24 in late December 2022 before starting the current uptrend. This uptrend allowed the price to break above the 20-week MA. It also helped it retest the horizontal resistance area at $0.42. Despite the rejection, ADA successfully turned this MA as support after creating a false breakout during the week of March 6-13 (red circle). This move also helped ADA form a higher bottom that marked the end of the downtrend.
Then, the price of ADA skyrocketed and climbed above the $0.42 level for the week of April 10-17. Thus, it reached a new year high of $0.46. However, it faced strong selling pressure at higher levels and settled below the $0.42 area. This is a bearish signal that usually leads to more bearish. Therefore, it is possible for ADA to retest the 20-week MA at $0.36 once again. However, despite this weakness, ADA formed a higher top and a higher bottom structure. Therefore, the trend should still be considered bullish until the 20-week MA is broken.
ADA weekly chart / Source TradingViewAltcoin breaks below ascending parallel channel
ADA broke below an ascending parallel channel and confirmed it as resistance on April 26. This indicates that the bears have taken control of the price action. The nearest support area is located at $0.38, while the next important support area is at $0.34 formed by the ascending support line and horizontal support area.
The RSI indicator has dropped sharply from the overbought zone. It also supported further declines by dipping below 50. Therefore, ADA price is likely to drop below the $0.38 support area and decline towards the next $0.34 support area.
ADA daily chart / Source: TradingViewThe most likely outlook suggests that ADA will continue to decline in the near future. The nearest support area is $0.38, while the next important support area is $0.34. However, it still makes sense to consider the trend bullish until we break the 20-week MA ($0.36).
The next target of the leading altcoin Ethereum is $ 1,500!
A crypto analyst using the name “TheMoonCarl” on Twitter has spotted an alarming pattern on Ethereum’s four-hour chart. According to the analyst’s chart, a bearish ‘head and shoulders’ pattern is forming for Ethereum. If this is confirmed, it could cause ETH to drop to $1,570.
CHART: #Ethereum Head & Shoulders Pattern. pic.twitter.com/59aOspi7gv
— Carl From The Moon (@TheMoonCarl) May 1, 2023
The ‘head and shoulders’ pattern indicates that the bull trend has peaked and a reversal has begun. Also, crypto analyst Ali Martinez points to weak network fundamentals for the leading altcoin.
#Ethereum | Increased active users, transaction volume, and blockspace demand indicate healthy $ETH network adoption.
However, the monthly average of active #ETH addresses has been rejected by the yearly average, suggesting weak network fundamentals and reduced utilization. pic.twitter.com/c5Lsl7hhmf
— Ali (@ali_charts) May 1, 2023
The analyst points out that the monthly average of active ETH addresses is being rejected by the annual average, indicating weak network fundamentals and declining usage.
Binance Coin needs to lose some weight!
As you follow on Kriptokoin.com, BNB has taken a small step back in early trading. Therefore, the price of Binance Coin is likely to drop by around 3% in search of support. On Sunday, the price action rose significantly. It also dragged the RSI towards the overbought zone. Therefore, this move did not come as a surprise. As profit buying continues, we expect to see a drop towards $330.
It is possible for BNB to find support on the monthly pivot later this Monday, before turning higher in the early US trading session this Monday. Even if BNB falls towards $323.80, it is likely to act as a stop as the blue line is where the rally started on Sunday. To continue the rally and move towards $345, it must break Monday’s high at $340.
BNB 4-hour chartThe bigger risk for Monday’s price action is on the weekly chart. BNB is showing more bearish signs. If pressure builds on the 55-day Simple Moving Average (SMA), a break lower could easily result in a 10% loss as the 200-day SMA is trading near $297. Breaking the psychological level of $300 will cause many bulls to unload more. So it means there will likely be more downside moves.
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