Crypto analyst Nicholas Merten is expressing bearish sentiment on one top-five crypto asset amid relative calm in the market.
Merten tells the 511,000 subscribers of the DataDash YouTube channel that Binance Coin (BNB) could undergo heavy correction if a critical support level crumbles.
According to Merten, BNB could fall by up to 83% from the current level to a price last recorded in the first quarter of 2021.
“[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 trading at $242 at time of writing.
Turning to Bitcoin (BTC), Merten says that failure to break above the current resistance level will suggest that the flagship crypto asset’s chances of a rally are slim and that the bear market could linger longer than anticipated.
“[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.”
On XRP, the widely followed analyst says that the fourth-largest crypto asset is on the cusp of plummeting after appreciating by over 50% from mid this month amid a favorable ruling 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.”
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