Altcoins Test Critical Support Levels Amid Market Downturn and Recovery Attempts
Altcoins Test Critical Support Levels Amid Market Downturn and Recovery Attempts
Recent market analysis highlights several major altcoins navigating pivotal technical phases. Cardano is retesting a significant support line at $0.52, a level that has historically triggered strong rebounds, though its short-term price has seen a considerable decline. Ethereum faces a potentially severe downside, with analysts warning of a possible drop to $2,400 or $1,700 if key supports fail. Meanwhile, Solana is attempting a recovery wave after a fresh decline, but current trading volume suggests caution, with key resistance levels needing to be cleared for sustained upside.
Cardano Retests Key Support, Ethereum Faces Downside Risks
An analyst has pointed out how Cardano (ADA) is retesting a level that has helped the asset’s price rebound multiple times during the past year. Cardano is retesting the support level of a Parallel Channel. Analyst Ali Martinez shared a pattern forming in the daily price of Cardano, described as a Parallel Channel, a type of consolidation channel from technical analysis (TA). This pattern indicates sideways movement, with an upper line acting as resistance and a lower line as support. A break above the channel can be a bullish signal, while a fall under it is bearish.
As displayed in the chart shared by Martinez, Cardano has witnessed a plummet toward the Parallel Channel’s lower level situated at $0.52 with the recent downturn in the cryptocurrency sector. Since ADA started trading inside the channel back in November 2024, its price has rebounded at this line several times. Given this pattern, it’s possible that the asset may find support at the mark once more. However, it remains to be seen whether the Parallel Channel will continue to hold or if a breakdown is coming next. At the time of writing, Cardano is floating around $0.547, down over 16% in the last seven days.
Ethereum (ETH), ranked second by market cap, is also trading inside a Parallel Channel, according to Martinez. Unlike ADA’s channel, this pattern in the 3-day Ethereum price is a long-term one, beginning way back in 2021. ETH found rejection at the resistance of this Parallel Channel earlier in the year and has since been on the way down. The analyst warned, “The worst-case scenario: Ethereum $ETH fails to reclaim $4,000, breaks through $3,800 support, and drops to $2,400 or $1,700.”
Solana Attempts Recovery, Caution Remains
Solana (SOL) started a fresh decline below the $162 zone and is now attempting to recover, facing hurdles near the $166 zone. The price is currently trading below $165 and the 100-hourly simple moving average. A low was formed at $145, and the price recently started a recovery wave, moving above the 23.6% Fib retracement level of the downward move from the $188 swing high to the $145 low. There was also a break above a key bearish trend line with resistance at $155 on the hourly chart of the SOL/USD pair.
On the upside, immediate resistance for Solana is near the $165 level, with the next major resistance near $166 and the 50% Fib retracement level. The main resistance could be $172, and a successful close above this zone could set the pace for another steady increase towards $180 and potentially $188. However, if SOL fails to rise above the $166 resistance, it could continue to move down. Initial support on the downside is near $160, followed by major support at $155 and $148. A close below $148 could send the price toward the $142 zone in the near term. Technical indicators show the Hourly MACD losing pace in the bearish zone, while the Hourly RSI is above the 50 level, indicating a mixed outlook.