3 Cryptocurrencies That Are Poised for a Washout

The prices of three cryptocurrencies have dropped significantly during last month’s epic selloff, and they could plunge even lower in July 2022.

| More on:
cryptocurrency, crypto, blockchain

Image source: Getty Images

Investors have incurred devastating losses from the crypto winter and are ever more anxious with Bitcoin’s 2.6% decline to start July 2022. The turmoil in the space isn’t limited to the world’s largest cryptocurrency, as other digital assets are in struggling, too.

The market rout is so brutal that published reports say cryptocurrency exchange Coinbase had to stop selling Bitcoin on 1st of July. Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), and Cardano (CRYPTO:ADA) are losing by more than 65% year to date. If the three cryptos fail to hurdle their respective price support or threshold, a washout could ensue.

Far from bottom

Ethereum is the second-largest cryptocurrency by market capitalization. At the price of US$1,059.77, the year-to-date loss is a 71.22%. According to some crypto analysts, ETH hasn’t reached its bottom, and therefore, expect the downward trend to continue. Crypto bears think the support point is US$885.

The team behind this crypto hopes the platform’s transition to Ethereum 2.0 or second-generation update could result to wider adoption. Currently, the rapidly expanding non-fungible tokens (NFTs) are held on the Ethereum blockchain. Meta, formerly Facebook, has started the rollout of NFTs for selected U.S. creators on its flagship social network.

Navdeep Singh, Meta’s product manager, said users can showcase their NFTs on their Facebook profiles through the “digital collectibles” tab. According to Decrypt, the social media network will start with Ethereum and Polygon ETFs. Ethereum NFTs are already featured on photo-sharing app Instagram.

Unpleasant outlook

Solana is in deep correction, given its year-to-date loss is a staggering 80.74%. As of this writing, the price is US$32.80 from US$170.30 on year-end 2021. Had you invested $5,000 on December 31, 2021, your money would be worth $963.01 today.

The crypto rose temporarily on June 23, 2022, after the announcement of the launch of Solana mobile stack. The said project enables native Android Web3 apps on Solana. It will also release its “Saga” Android phone through Solana Mobile soon. Besides complementing the new operating interface for smartphones, Solana Mobile aims to be the in an effort to leader in Web3-enabled devices.

Because of its low-fee nature, Meta also plans to add support for NFTs on Solana. The blockchain is also suitable for gaming DApps. Solana sees the tech stack for mobile phones as the next step in creating wider access to these technologies. Unfortunately, the outlook for this crypto isn’t bright.

Twitter user Crypto Tony predicts that the lower support levels for Solana are between US$13.50 and US$3.50.

Bearish sentiment

Cardano’s rebound from its year-to-date loss of 65.8% (US$0.448089) is likewise uncertain. Moreover, crypto analysts say it’s too risky to enter a short position in this crypto while there’s a bearish momentum. According to market observers, the seventh-largest crypto is one of the busiest platforms this year, as it continues to develop its ecosystem.

Investors welcomed the upgrade in the smart-contract features of Cardano’s Alonzo. However, it won’t be enough to overcome the overall negative sentiment in the crypto market. The bearish market price prediction for 2022 is US$0.399.

Test of stability

The stability of Bitcoin and other cryptocurrencies will be tested this month following the epic market selloff last month. However, with surging inflation and more rate hikes coming, crypto prices could drop even lower.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Bitcoin, Coinbase Global, Inc., Ethereum, Twitter, and Solana.

More on Investing

chart reflected in eyeglass lenses
Tech Stocks

Top Canadian AI Stocks to Watch in 2025

Celestica (TSX:CLS) stock and another Canadian AI stock are worth watching closely this holiday season.

Read more »

woman looks out at horizon
Investing

Is Sun Life Financial Stock a Buy for its 4% Dividend Yield?

Let's dive into whether Sun Life Financial (TSX:SLF) stock is a buy for its dividend yield alone, or if this…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

1 Magnificent Energy Stock Down 17% to Buy and Hold Forever

Down over 17% from all-time highs, Headwater Exploration is a TSX energy stock that offers you a tasty dividend yield…

Read more »

Man data analyze
Investing

Want $1 Million in Retirement? 2 Simple Index Funds to Buy and Hold for Decades

Just invest in a S&P 500 index fund and do nothing.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Thursday, November 21

Escalating geopolitical tensions and U.S. economic data remain on investors’ radar today as the TSX continues to hover above the…

Read more »

think thought consider
Investing

Should You Buy Couche-Tard Stock Aggressively Before Nov. 25?

Here’s what could help Couche-Tard stock rebound after its upcoming earnings event.

Read more »

calculate and analyze stock
Bank Stocks

4% Dividend Yield? I Keep Buying This Dividend Stock in Bulk!

If you find the perfect dividend stock, you never have to worry about investing again. And that's what you get…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Should You Buy the 3 Highest-Paying Dividend Stocks in Canada?

A few dividend stocks saw a sharp correction in November, increasing their yields. Are they a buy for high dividends?

Read more »