Monat: Mai 2022

As the crypto market experiences one of its worst crashes in recent years, Cardano (ADA) has hit a new low. The coin has fallen below $0.5 for the first time in months. Although this is already bad news, the worse is yet to come for ADA. Here is what you need to keep in mind:

• In the last 24 hours alone, ADA has crashed by over 30%

• It’s the first time in months that Cardano has breached the $0.5 mark

• More losses are expected to come as the broader market faces a steep correction

Data Source: Tradingview 

Cardano price analysis – Difficult times ahead

After falling nearly 65% from its highs in May, you would think that the worse is over for ADA. But the current bearish trend around the coin is only getting started. In fact, after falling below $0.5 for the first time in months, we expect the coin to continue the steep decline. 

It is possible that ADA will bottom towards its next $0.35 support before it tries to find any demand. This will represent a fall of around 25% from the current price. ADA would also lose over 100% in value from its highest price this month. 

The only positive sign in this setup is the RSI reading. This momentum indicator for ADA has moved towards the oversold territory. The risk of a big sell-off is therefore relatively limited. But as investor sentiment in crypto wanes, it will be harder to find ADA buyers in the coming days.

Should you hold or Sell ADA?

As Cardano accelerates losses, it can be easy just to sell off and limit your exposure. But we still think that ADA is one of the few coins in the market worth holding. Even though the coin will not return to $1 soon, we expect it to retest $0.75 after it bottoms at $0.35.

The post Cardano (ADA) hits new lows – Why the worse is still to come appeared first on Coin Journal.

Binance Coin (BNB) has seen some steep losses over the last few days. However, although the coin is following the trend in the broader market, these losses have exposed BNB to significant downside risk that could lead to further serious declines. Here are some facts:

• For most of 2022, BNB has found massive demand between $253 and $308

• A 20% crash in the last 24 hours means that bulls have now lost that demand zone

• If recovery doesn’t come soon, BNB will fall sharply again in the coming days

Data Source: Tradingview 

Where will BNB go next?

It was only recently that BNB was hovering well above $300. For most bulls, it was a time of consolidation, and there were hopes that the coin could stroll towards $400 in no time. But the crypto crash over the last few days has put so much pressure on BNB. The coin has lost 20% over the last 24 hours alone. 

But more importantly, BNB has also lost a crucial demand zone. You see, even with high volatility in the market, the coin was getting significant buyers between $308 and $253. The recent crash has pushed the price action outside this buy zone. 

Unless there is a recovery in the next 24 hours, BNB will come under selling pressure as bears take complete control. The coin will likely bottom at $222 or thereabout before any other bull run.

Are we seeing a serious BNB correction?

Losing nearly 40% in less than three days would be seen as a serious correction for any coin. But for BNB, the sharp fall has simply exposed it to further downside risk. For this reason, we don’t think the steep decline is over. 

In fact, based on sentiment in the market, it would be plausible to expect further BNB losses before the end of the week. We are therefore seeing a very serious correction with the coin.

The post Binance Coin (BNB) exposed to further risks as the coin falls sharply in broader crypto sell-off appeared first on Coin Journal.