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Crypto analyst Nicholas Merten warned that Binance Coin (BNB), one of the top 5 cryptocurrencies in the market amidst relative calm, could experience a sharp decline. The analyst also issued a warning about Ripple’s XRP and Bitcoin (BTC).
Expert Warns about Binance Coin (BNB) and Ripple’s XRP
Merten, evaluating the market in a recent strategy session on his YouTube channel DataDash, stated that BNB could experience a significant correction if it falls below a critical support level. The analyst cautioned that Binance’s service token could drop by up to 85% towards the level last seen in the first quarter of 2021.
BNB is barely holding above its 200-week moving average and is currently maintaining the support level around $180, which has been protected since February 2021. If this level is breached, the trendline between two important levels in September 2017 and March 2020 will become a critical level for BNB. If the price fails to hold above this horizontal support, it could drop to around $40 to $45.
The analyst also commented on Ripple’s XRP. After the court ruled in favor of the blockchain company in the lawsuit brought by the U.S. Securities and Exchange Commission (SEC), causing XRP to gain over 90% in value, he warned that it could be on the verge of a decline. He said, “It is not making an optimistic price move. The daily timeframe chart is very close to a bearish reversal. This is not what we want to see after a massive upward movement. It’s more like ‘buy the rumor, sell the news,’ isn’t it? In this case, the hype has already been priced in, and it’s time to sell the news.”
Analyst: Bitcoin Could Experience a Pullback to $27,000
Turning to Bitcoin after BNB and XRP, Merten warned investors that if the largest cryptocurrency fails to surpass the resistance level ahead, the likelihood of a rally in the crypto king is low, and he expects the bear market to last longer than expected.
If we fail to break above the range of $32,000 to $36,000, it will continue to act as strong resistance that won’t be overcome in the short term. As the price continues to fall below the support band of the ascending channel that passes through these levels, there could be a potential drop to $28,000 or even $27,000. To be honest with you, the failure to break the range of $32,000 to $36,000 would signal that the market is going through a bear market that will likely last much longer than many people think.
