Crypto analyst Nicholas Merten is concerned over the potential price corrections for major cryptocurrencies, including Cardano ADA/USD, Ripple XRP/USD, and Binance Coin BNB/USD.
"I think this is going to come down in history as one of the biggest distribution patterns in the history of crypto," Merten commented.
The current price action indicates an increased available supply due to the distribution and release of previously locked assets into the market.
As the world of digital assets continues to evolve, understanding these market dynamics becomes crucial. This topic, among others, will be a central discussion at Benzinga's Future of Digital Assets conference on Nov. 14, where experts will delve into the future trajectories of such technologies.
Merten highlighted specific patterns in the price action of these digital assets, suggesting that they might be on the brink of substantial downturns.
Regarding XRP, he expressed reservations about its potential as an investment. "I’m not excited buying something like XRP even as a speculative asset until I come down here and test this line of support [at the $0.15 level]," he said.
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He further voiced concerns that once this level is breached, a rebound might be unlikely.
Turning his attention to ADA, Merten noted that while many are optimistic about the cryptocurrency forming a triple bottom, the consistent resistance and diminishing relative highs over time suggest a potential decline.
He remarked, "I think this snaps lower. I think this is going down to $0.15."
Merten clarified that his analysis is not a critique of the projects themselves but rather an observation of market liquidity and its impact on price direction.
He concluded, "I’m here to say at the end of the day that the direction, the underlying thing that is going to set the momentum for either direction and price, the broad price performance of financial assets including cryptocurrencies is liquidity and unless liquidity starts to rebound, ADA is likely going lower.”
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