Blue-Chip Altcoin at Risk of 80% Plunge, Bitcoin and XRP Outlook Updated
In the market’s relative calmness, crypto analyst Nicholas Merten criticizes one of the top five crypto assets.
If a required support level collapses, Merten warns the 511,000 viewers of the DataDash YouTube channel, Binance Coin (BNB), may see a severe correction.
BNB might decrease by up to 83% from its current level to a price last seen in the first quarter of 2021, according to Merten.
“[BNB is] just barely hanging by a thread by the 200 moving average and just hanging right above the support level [around $180] that has been holding since February of 2021. If that level is broken, if the trend line between the two significant higher lows here from back in September 2017 and March of 2020, very critical lows for BNB, if that line of theoretical support does not hold, if the line of sideways support does not hold and if we don’t get support off of the prior resistant highs from June 2019 in January 2018, where is BNB heading?
Well, take a look at the chart here. We enter into no man’s land until easily down here around $45 to $40.”
BNB is now trading for $242.
About Bitcoin (BTC), Merten asserts that failing to surpass the existing resistance level will imply that the flagship cryptocurrency asset has little chance of rallying and that the bear market may last longer than expected.
Merten stated:
“[If] we are not able to break through this prior support range [$32,000 – $36,000], which is now resistance to the sideways channel here, if we cannot clear through that here within a very short window of time, this is going to continue playing as resistance.
And as we continue to push below the support band of this ascending channel and break through that potentially down to, say, $28,000, $27,000, this is going to be full proof that the market does not have the juice to move forward…
I got to be honest with you guys here, as the price has been holding up in this range [$32,000 – $36,000], and now such a long-term range of prior support is now acting as resistance, I got to tell you guys, this sends signals that the market is going to likely have a much further long drawn-out bear market than many people think.”
The well-known analyst claims that XRP, the fourth-largest cryptocurrency asset, is about to crash after rising by over 50% since the middle of this month due to a favorable decision in the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple.
“This is not optimistic price action. We’re very close to getting a red flip here on the daily [time frame chart]. And that’s not what you want to see – some huge 72% move and then no follow-through afterward? It’s more ‘buy the hype, sell the news,’ right? In this case, essentially, the hype had already been priced in, and now it’s time to sell the news.”
