The S&P 500 index has crashed to its lowest level since January 14 as concerns about tariffs and the artificial intelligence growth remained. It dived by over 2% on Monday, triggering a big crash among altcoins like Cardano (ADA), Litecoin (LTC), and Binance Coin (BNB). So, what next for the S&P 500 index and these altcoins.
S&P 500 index is at significant risk
The S&P 500 and other American stocks may be at risk of more downside after Trump moved ahead with tariffs on key imports. These tariffs will lead to higher inflation and slow economic growth this year. They will likely push the Federal Reserve to prematurely cut interest rates, which explains why US bond yields have plunged.
There are also concerns about S&P 500 index stocks valuations. In a recen statement, Jeremy Grantham, the billionaire founder of GMO, warned that US stocks were in a super bubble that may pop soon. He said:
“I’ve always looked at it from the point of view that the longer and the bigger and the higher it goes, the more exciting and dangerous it will be, and this has moved up the rank of super bubbles.”
The S&P 500 index has flashed three sell signals. It formed a triple-top pattern at $6,127 and whose neckline is at $5,777. It has moved below the 100-day moving average and dropped below the lower side of the rising wedge pattern. That means that the index may lead to more downside, potentially to $5,130, its lowest level in August last year.
Cardano, Litecoin, and BNB predictions
The plunging S&P 500 index may have a big impact on cryptocurrencies like Cardano, Litecoin, and BNB. So, which are the top levels to watch?
Cardano price forecast
The daily chart shows that the ADA price surged and peaked at $1.175 on Monday after being included in Donald Trump’s strategic crypto reserves. It then dropped to $0.86 in the overnight session. This crash happened as investors predicted that Trump will face an uphill battle getting congressional approval for such reserves.
Cardano price still has strong technicals in that it has formed a falling wedge chart pattern, a popular bullish continuation sign. As such, the ongoing plunge may be part of the formation of a break and retest pattern, a bullish continuation sign. Therefore, ADA price will likely resume the uptrend and retest the key resistance at $1.175.
Litecoin price prediction
The LTC price crashed to $108.05 as most cryptocurrencies dived. This decline happened even as the odds of a LTC ETF approval jumped ahead of the upcoming crypto summit.
Litecoin price dropped below the support at $112.60, the highest swing in April 2024. It also retested the ascending trendline that connects the lowest swings since November 15. This diagonal line is part of the ascending triangle pattern.
Litecoin has remained above the 100-day Exponential Moving Average. Therefore, the token may resume the uptrend later this week as buyers target the upper side of the triangle pattern at $140.
The risk, however, is that Litecoin price may have formed a triple-top pattern whose neckline is at $80.6. A crash below the diagonal line will point to further downside to $80.
BNB price analysis
Binance coin price has suffered a big reversal after peaking at $792.37 in December last year. BNB has plunged to $575, its lowest level since February 4. It has retreated below the 50-day moving average and the strong, pivot, and reverse point of the Murrey Math Lines.
The BNB price will likely continue falling as sellers target the key support at $539, the weak, stop & reverse point. This price is also along the upper side of the trendline that connects the lowest point since January 2024.
Read more: US to Establish Crypto Strategic Reserve with XRP, SOL, and ADA
