At the time of writing this article (1900 EST), the following cryptocurrencies are down double digits:
Cardano (ADA) -17%
Basic Attention Token (BAT) -16.1%
Bitcoin (BTC) -11.59%
Doge (DOGE) -36.75%
Polkadot (DOT) -24.41%
Ethereum (ETH) -16.54%
Komodo (KMD) -28.53%
ChainLink (LINK) -20.5%
Stellar (XLM) -20.41%
Monero (XMR) -23.44%
Tezos (XTZ) -18.46%
Zcash (ZEC) -22.55%
0x (ZRX) -22.84%
Total Cryptocurrency Market Cap -14.88%
Altcoin Market Cap -17.19%
The list above represents a good collection of cryptocurrencies that represent a broad range of sectors within the cryptocurrency space (privacy coins, defi, tokenization, networks/ecosystems, etc). This shouldn’t be a surprise to anyone who is a regular reader of my articles or viewer of my daily analysis – this is something that we’ve been talking about for months. Today is the first day where a large number of the cryptocurrencies I frequently write about are at or near their first support levels. I want to review some of them in this article.
Above: Cardano (ADAUSD) Chart
First up on the list, Cardano. The 1.20 value area is the first support level I’ve identified and the reasons for that support are based on three primary factors. First, the existence of a high volume node in the volume profiled at 1.20 tells me that there’s participation at that level for bulls and bears. Second, the 50% Fibonacci Extension is at 1.22. And third, the 38.2% Fibonacci Retracement is at 1.16. I could include the full range of the volume profile and include the 1.12 zone, but I don’t feel like 1.12 would hold very long as a support zone if 1.18 – 1.20 are broken. Currently, buyers have stepped in to support Cardano at the 1.17 and 1.18 levels. We’ll see if bulls can maintain this level or if the bears will push Cardano down to the 0.84 – 0.94 levels.
Above: Cardano (ADAUSD) Chart
Ethereum has been slapped down lower and below the 2000 value area today, now trading in the 1800 – 1900 zones. This is the first time Ethereum has traded below the 2000 level since May 23rd, 2021. 1800 is the first level to test as support. The presence of a high volume node in the volume profile as well as the 50% Fibonacci Extension yield some support to 1800 holding. However, if 1800 fails to hold as support then we should see an easy drive down to the next support zone between 1200 and 1400. The 38.2% Fibonacci Retracement and 78.6% Fibonacci Extension both occur near the 1400 level.
Binance Coin (BNBUSD)
Above: Binance Coin (BNBUSD) Chart
Binance Coin’s daily chart is one chart that tells me a major, major drop is about to happen. There is a high volume node at 269 that is acting as the present support level. If the 269 level fails, then there is almost zero support in the volume profile – it’s just wide open space all the way down to the 134 value area. A move from the present traded level to 134 is roughly a -50% drop. There might be some small support when Binance Coin hits the 38.2% Fibonacci Retracement at 227 and at the 50% Fibonacci Retracement at 160, but I wouldn’t count on it. The 50% Fibonacci Retracement level in particular has one of the lowest volume nodes in the volume profile.