Cryptocurrency markets began to stir as losses escalated with BTC leading the way. SOL Coin, after a parabolic rise, pulled back to the $54 level. An important point to note in altcoins is the loss of significant support areas. This suggests that the fall of BTC could lead to more profound losses.
With SOL Coin dropping to $54 and BTC losing about $1,800, a different scenario could emerge if BTC fails to surpass $38,000 in the short term and does not test $40,000 to form higher support levels. As we approach the end of the month, we will see what the intensifying struggle will bring to altcoins.
If the price of SOL Coin falls below the 20-day EMA ($53), losing $51 could complete a head and shoulders formation. This scenario could lead to a sharp decline to the 50-day SMA ($40) and then to $34. We had written in CoinShares’ November 27 report that SOL Coin entries had dropped to $3.5 million. This indicates that the GSOL premium could fall further and the speculative rise could naturally weaken.
On the contrary, closures above $59 could bring a test of $68.
Cardano has not been able to overcome the general resistance of $0.40 in the last three days. We have extensively discussed how critical and challenging this level is. Investors moving for profit realization were affected by the overall market sentiment. If sales continue, we could see a return to $0.32 after $0.37 and $0.34. Otherwise, as we previously mentioned, the target will be $0.46.
As we approach the end of the month, we should not forget that BTC bulls could try to push the price higher more confidently.