Will The Top Layer 1 Altcoins Survive This Crash?

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Written By Pinang Driod

With the U.S. and Asian markets on weaker grounds, the crypto market struggles to hold the sell-off. As Bitcoin drops under $63,000, the top layer-1 altcoins break below multiple crucial supports. 

The massive sell-off offers sideliners a massive discount entry opportunity to accumulate on the dip. However, will the altcoins manage to bounce back from this correction phase?

Let’s find out more in our price analysis below. 

Ethereum 

With the breakdown in Bitcoin’s price, the biggest layer-1 altcoin, Ethereum, took a huge bearish dive. The sell-off wave took a huge hit at the $3,000 psychological mark and warned of a further correction.

Tradingview

The altcoins crack under the 50D EMA and warn of a drop to the ascending support trendline. This correction will drop the altcoin under the $3,000 level and might retest the $2,800 mark. 

However, the bullish dominance at the support trendline will increase the chances of reversal. Hence, a bounce back could drive the Ethereum prices back to $4,000 post-halving. 

Binance (BNB)

One of the least affected layer-1 altcoins in the bear market, the Binance token price shows a sideways trend. The massive correction in the overall market has dented the BNB market price by 6% in two weeks. 

Tradingview

In the 4H chart, the BNB price trend shows a drop under the 50 and 200 EMA and breaks a support trendline. The layer-1 altcoin sustains above the $500 psychological mark while teasing a double-bottom reversal at $540. 

Optimistically, the uptrend could drive the BNB price higher to the $650 mark. 

Solana (SOL)

Being one of the top-performing layer-1 altcoins in early 2024, Solana showcases an intense pullback in motion. The downfall puts the SOL token price under the $150 psychological mark and teases a fall to $100.

Tradingview

As per the Fibonacci retracement, the 50D EMA breakdown rally tests the 50% Fib level at $135. A breakdown under this level will put the $100 psychological mark and the 200D EMA in danger.

However, the psychological mark of $100 shows multiple bullish catalysts at play to revive the uptrend. In such a case, the bounce back will bring an excellent dip-hunting opportunity for sideline traders. 

Further, the highly anticipated post-halving rally could fuel the SOL price higher to $250 in a few weeks. 

Avalanche (AVAX)

With the Avalance network’s impressive growth before the crash, the layer-1 atlcoin surged to $60. However, the pullback initiated at $60 gained additional bearish momentum with the market crash, resulting in a $50 breakdown.

Tradingview

The downfall creates a falling channel pattern in the daily chart and tests the 200D EMA. Despite the crash, the AVAX price stands at a pivotal stage with chances of a bounce back. 

With strong support at $29 and the 200D EMA dynamic support, a bull cycle could start in the falling channel. The bull cycle could break the $50 psychological level and lead the layer-1 altcoin to a jump to $75. 

Cardano (ADA)

Almost reaching the psychological mark of $1, the ADA price takes a quick dip, leading to a bear cycle. Similar to the rest of the layer-1 altcoins, the market-wide correction intensifies the pullback for Cardano, leading to a drop below $0.50.

Tradingview

The immense overhead supply breaks the crucial 50 and 200D EMA and the long-coming support trendline. As the ADA price trades below $0.50, the buyers attempt to take support at the $0.46 demand zone.

If the buyers manage a turnaround, a bull run will reclaim the $0.50 level and potentially test the $0.67 mark. 

Conclusion For Layer-1 Altcoins

As the overall market is under correction, some layer-1 altcoins showcase instant reversal opportunities. However, some are yet to approach the next crucial demand level to find a solid reversal footing. Nevertheless, the ongoing conflict generates correction waves in the global markets, bringing an opportunity to buy the dip. 

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