The beginning of July gave investors a bullish mood, but the second half of the month brought it to naught: after reaching an annual maximum on July 13, the total capitalization of the cryptocurrency market has significantly decreased.
While some assets are showing signs of an imminent reversal, for other cryptocurrencies, the worst could be yet to come. The BeInCrypto editors have analyzed four tokens that have every chance of hitting new lows in August.
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Cardano (ADA) Loses Important Level of Support
Cardano has been following a rising support line since dropping to a yearly low of $0.22 on June 10th. The rapid rise ended on July 14 with a high of $0.38. However, the price of ADA began to decline. The downtrend was catalyzed by a rebound from the $0.36 horizontal resistance zone (marked in red on the graph)after which a candle with a long upper wick formed on the chart.
Source: TradingView
If the fall continues, the immediate support will be at $0.25, which is 13% less than the current price of $0.29. Since this is the last support zone before the $0.15 area, its break could further accelerate the pace of decline.
BNB is at risk of breaking the rising channel
The price of BNB fell after hitting a yearly high of $350 on April 16th. The downward movement led to an annual low of $220 on June 12th. After that, the asset rebounded, confirming the $230 horizontal area as support.
Source: TradingView
BNB is currently trading inside an ascending parallel channel, which is considered a bearish pattern. The fact that the price is moving in its lower part further increases the likelihood of a breakout. In this case, BNB could drop another 20% and reach the $190 support level, dropping to a new yearly low in the process.
Despite the bearish outlook, a sharp bounce off the channel’s support line could push the BNB price up to resistance at $270.
Theta Network (THETA) runs into long-term resistance
THETA price has been below a descending resistance line since reaching an all-time high of $15.88 in April 2021. This line lasted 840 days and was the catalyst for a 95% price drop. On July 24, the asset made an attempt to break through (it is marked with a red icon on the graph) above her, but failed.
Source: TradingView
At the moment, THETA is trading just above the $0.60 horizontal support area. If it fails, the price of the token could quickly drop to $0.34, i.e. 55% below current values.
A break of the descending resistance line will most likely result in a 100% rise in price. In this case, THETA will reach $1.50.
Curve DAO (CRV) crashes
CRV has been moving along an ascending support line since November 2022. On July 31, the price of the asset fell to an annual low of $0.48 amid concerns about the liquidation of the positions of Curve founder Mikhail Egorov.
Source: TradingView
However, the bounce that followed caused CRV to approach this rising line again. The further direction of the trend will depend on whether the token manages to gain a foothold above it.
A break is likely to lead to a rise to the $0.85 resistance area, and a break will trigger a fall to $0.33.
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2023-08-05 17:28:00
#Cryptocurrencies #Renew #Lows #August
