Cryptocurrency market ablaze – Altcoins $ETH, $SOL, and $WIF plummet

As a seasoned analyst with over two decades of market observation under my belt, I must say, this current crypto storm is reminiscent of a category 5 hurricane. The turbulence we’re witnessing today in the altcoin market feels like the aftermath of the dot-com bubble – only more intense and unpredictable.


In the midst of whispers about potential conflict, the Japanese stock exchange plummeting, and a massive dump in high-risk investments, the cryptocurrency market is experiencing turmoil. Bitcoin ($BTC) has dropped by 12%, and other altcoins are experiencing a steep decline. It’s hard to predict just how low altcoins will go at this point.

Bitcoin has reached its significant line of defense at approximately $51,000. Should Bitcoin fail to maintain this level, severe consequences may unfold, often referred to as a ‘worst-case scenario.’ If Bitcoin is exhibiting such a downturn, one can only imagine the turmoil affecting other cryptocurrencies.

$ETH falls 23%

Despite the ETF decision, Ethereum (ETH) remains the dominant altcoin. Over the past week, ETH has experienced a significant decline in value, reaching a 23% drop just on Monday, marking a substantial setback.

In my analysis, over the past four days, the Ethereum price has plunged dramatically, breaching the Fibonacci supports at 0.382 and 0.618. Remarkably, it approached the 0.786 level, a significant support point, before this analysis was completed.

At present, the value of ETH is maintaining its stability near $2,300, which serves as a significant horizontal floor. If it were to drop, $2,000 would be the next potential level. However, the trendline that defines the bull market support lies just below this point, not much further down.

$SOL gives back 5 months of gains

Solana’s ($SOL) recent performance has erased all the growth it experienced from late February to late July within a week’s time. As of August 2nd, its price re-entered a long-standing triangle pattern, and on Monday, it broke through the lower trend line, causing a subsequent drop. The 0.786 Fibonacci level lies near the current price at approximately $106.

$WIF gets destroyed

In this bull market, memecoin $WIF has been leading the pack in terms of performance. However, during the ongoing crypto market downturn, $WIF is experiencing significant losses. The significant support at $1.49 has been breached, and the current price of $WIF is struggling to maintain its position above the 0.786 Fibonacci level at approximately $1.10. The lowest horizontal support can be found at around $0.43.

As the U.S. stock markets prepare to open within the next two hours, events unfolding there could determine if the cryptocurrency market continues to decline or manages to recover today.

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2024-08-05 15:25