While July began with a crypto bull market, the second part of the month was bearish. This is especially evident in the drop in total market capitalization that followed the yearly high on July 13th.
While there is hope that a bullish reversal will begin in August, all four bearish cryptocurrencies have a negative outlook, signaling that the worst is yet to come.
The fall of Cardano (ADA) may accelerate due to loss of support
The price of Cardano (ADA) has been following an ascending support line from the yearly low of $0.22 on June 10. The rise was rapid, peaking at $0.38 on July 14.
However, the cryptocurrency has since fallen. The decline was driven by a rejection of the $0.36 horizontal resistance area (red icon), which created a long upper wick.
The reason why the deviation is critical is that it triggered a breakout of the ascending support line on August 1st.
If the decline continues, the next immediate support will be at $0.25, down 13% from the current price of $0.29. Since this is the last support area before $0.15, a break could further accelerate the rate of decline.
However, it is worth noting that the latest update of Cardano Mithril significantly improves efficiency. Cardano founder Charles Hoskinson stated that Mithril will significantly improve performance.
BNB: Price Channel Breakout Risk
The price of BNB has fallen since hitting a yearly high of $350 on April 16. The move down resulted in a low of $220 on June 12th. It was a 37% drop from the high.
Subsequently, the price of BNB bounced back, confirming the $230 horizontal area as support. However, the rebound did not leave a significant gain.
On the contrary, the price of BNB is trading inside an ascending parallel channel, which is considered a bearish pattern. The fact that the price is trading at the bottom of this channel also indicates the possibility of a breakout.
Since the $230 area is very close to the current price, a break of the channel is likely to trigger a break of that area as well.
In this case, the price of BNB could fall another 20% and reach support at $190, falling to a new yearly low in the process.
Despite this bearish BNB price prediction, a strong bounce off the channel support line could lead to a rally towards the $270 resistance line.
This may be driven by the positive news that Binance has received a license to operate from the Dubai Virtual Assets Regulatory Authority.
Theta (THETA) is rejected by long-term resistance
THETA price has fallen below the descending resistance line from the all-time high of $15.88 recorded in April 2021. The line has been in existence for 840 days and was the catalyst for a 95% price reduction.
Most recently, THETA’s price was rejected on July 24 (red badge). The rejection is worrisome as the price trades slightly above the $0.60 horizontal support area.
If THETA breaks out of this area, it could quickly drop to $0.34, down 55% from its current price.
However, despite this bearish THETA price prediction, a break of the descending resistance line is likely to lead to a 100% rally, bringing the price up to $1.50.
Curve DAO (CRV) closes the top crypto bears for August
The price of CRV has risen along with the rising support line since November 2022. The support line has caused numerous bounces so far (green icon).
Although it looked like the rebound had begun on July 31, the price of CRV quickly broke away from the line, dropping to a new yearly low of $0.48.
The collapse could be caused by fears that the loan of the founder of CRV, Mikhail Yegorov, will be repaid.
However, as a result of the bounce, the price almost rebounded from this ascending support line. If CRV manages to do this or is rejected, it can determine the direction of the future trend.
A move down is likely to result in a 45% drop to $0.33, while a breakout is likely to result in a rally towards the $0.85 resistance area, almost 50% up from the current price.
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Disclaimer: In accordance with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.