The sharp recovery in certain altcoins such as Bitcoin and AVAX shows that the bulls remain in charge. It also indicates that the bulls continue to buy at lower levels. Will Bitcoin and certain altcoins remain stuck in a range over the next few days? What are the important levels to pay attention to? Crypto analyst Rakesh Upadhyay examines the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
Investors hate uncertainty. Therefore, the agreement between Binance, Changpeng Zhao and the US Department of Justice is likely to be seen as a positive for the crypto space. Analysts were largely positive about the deal. However, a few spoke cautiously due to the SEC’s lawsuit against Binance. Bitcoin and several major altcoins fell sharply on November 21 following the Binance news. However, as you follow from Kriptokoin.com, the market is finding support at lower levels. This shows that investors stepped in after the initial immediate reaction. After the initial bounce, the bulls are likely to face stiff opposition from the bears.
Daily cryptocurrency market performance. Source: Coin360Buying on dips and selling on rallies results in a range-bound move as both bulls and bears battle for supremacy. Generally, a consolidation near a 52-week high is considered a bullish sign. However, traders should wait for an upward confirmation before jumping in to buy.
BTC, ETH, BNB, XRP and SOL analysis
Bitcoin (BTC) price analysis
The bears pulled Bitcoin below the 20-day exponential moving average ($35,948) on November 21. However, it could not maintain lower levels. Strong buying by the bulls pushed the price back above the 20-day EMA on November 22. BTC has been consolidating between $34,800 and $38,000 for several days. This shows that there is a balance between supply and demand.
A minor positive in favor of the bulls is that the 20-day EMA is sloping upwards and the relative strength index (RSI) remains in the positive territory. If the bulls push the price above $38,000, it is possible for BTC to start the next leg of the uptrend towards $40,000. This level is likely to act as a tough resistance. However, if the bulls clear, BTC is likely to rally to $48,000. Conversely, if the price declines and breaks below $34,800, traders will rush for the exit. This is likely to open the doors for a further decline towards $32,400.
Ethereum (ETH) price analysis
ETH turned down from the resistance line on November 20. Thus, it broke below the 20-day EMA ($1,957) on November 21. However, the bulls had other plans. They aggressively bought the dip below the 20-day EMA. Moreover, they are again trying to break through the barrier at the resistance line.
The 20-day EMA remains an important level to keep an eye on. Because a break above this could start a rally to $2,137 and then to $2,200. On the downside, $1,880 is a support you should pay attention to. If this level fails, it is possible that ETH could start a deeper correction towards the 50-day simple moving average ($1,791). This is likely to delay the start of the next leg of the upward move.
Binance Coin (BNB) price analysis
BNB witnessed a wild ride on November 21 with an intraday high of $272 and a low of $224. This indicates uncertainty about the next directional move between bulls and bears.
One minor positive is that the bulls did not allow the price to decline below the main support at $223. This started a recovery on November 22. Now the bulls are trying to push the price above the 20-day EMA ($240). If they are successful, it would indicate that BNB will consolidate between $223 and $265 for a while. Conversely, if the price fails to sustain above the 20-day EMA, it will indicate that the bears are selling in rallies. It is possible that this could push the price back towards $223. A break below this support could extend the decline to $203.
Ripple (XRP) price analysis
XRP turned down from the 20-day EMA ($0.61) on November 20. It then dropped to the 50-day SMA ($0.57) on November 21. The bulls are expected to defend the support at $0.56. Because if they fail to do this, a decline towards $0.46 is possible.
Meanwhile, the 20-day EMA is slightly inclined. Also, the RSI is just below the midpoint. These also point to a small advantage for the bears. If the price breaks above the 20-day EMA, it will indicate strong buying at lower levels. This would signal a possible range-bound move between $0.56 and $0.74 for a few days. Once XRP rises above $0.74, the bulls will be back in the driver’s seat.
Solana (SOL) price analysis
Solana broke above the critical overhead resistance at $0.59 on November 19. However, the bulls could not build on this strength. The bears pushed the price below $0.59 on November 20. SOL bounced back from the 20-day EMA ($51) on November 22. This showed that the bulls strongly maintained this level.
Buyers will again try to overcome the $59 barrier. It will also challenge the local high at $68. Conversely, if the price turns down from $59 once again, it would indicate that the bears remain active at higher levels. Sellers will then try to sink the price below the vital support at $48 again. If this level gives way, SOL is likely to drop to the 50-day SMA ($37).
ADA, DOGE, TON, LINK and AVAX analysis
Cardano (ADA) price analysis
Repeated failures of the bulls to keep Cardano above the $0.38 breakout level initiated a correction on November 21. The price reached the 20-day EMA ($0.35), which acted as a strong support. The sharp recovery at this level indicates strong buying by the bulls. It also increases the possibility of a move above $0.39. If it surpasses this level, a rally to $0.46 is possible for ADA.
If the bears want to prevent the rally, they will need to quickly pull the price below the 20-day EMA. A minor support holds at $0.34. However, if it cracks, ADA is likely to slide towards the 50-day SMA ($0.30).
Dogecoin (DOGE) price analysis
Dogecoin fell below the 20-day EMA ($0.07) on November 21. But the bears are struggling to sustain lower levels. Bulls are trying to push DOGE back above the 20-day EMA. If they achieve this, it will suggest aggressive buying on dips. The bulls will then make another attempt to break the overhead barrier of $0.08. Thus, DOGE will begin its march towards $0.10.
Alternatively, the bears will try to sell the rallies and keep the price below the 20-day EMA. This could open the doors for a potential decline to the 50-day SMA ($0.07) and eventually the important support at $0.06.
Toncoin (TON) price analysis
Toncoin (TON) is finding support at the 50-day SMA ($2.19). This shows that sentiment remains positive and traders are buying on dips.
Both moving averages are trending horizontally. Also, the RSI is just above the midpoint. This indicates a range-dependent movement in the short term. If the price stays above $2.40, a rise to $2.59 is possible. Contrary to this assumption, if the price declines and breaks below the 20-day EMA, TON is likely to test the support at the 50-day SMA. If it breaks this support, it is possible that TON could initiate a downside move towards $2 and then $1.89.
Chainlink (LINK) price analysis
LINK retreated from immediate resistance at $15.39 on November 20. Thus, it broke below the 20-day EMA ($13.63) on November 21. However, LINK broke above the 20-day EMA on November 22, indicating demand at lower levels. Buyers will once again attempt to push the price above $15.39 and retest the overhead resistance at $16.60.
Meanwhile, the bears are likely to have other plans. They will try to defend the $15.39 level and push the price below the 61.8% Fibonacci retracement level of $12.83. If they do so, it is possible that LINK could decline to the 50-day SMA ($10.94).
Avalanche (AVAX) price analysis
AVAX closed November 19 above its $10.52 to $22 range. However, the bulls failed to sustain higher levels. The bears pulled the AVAX price back below the breakout level on November 20. The 20-day EMA ($17.71) is sloping up. Also, the RSI is in positive territory. This shows that bulls have the upper hand.
Buyers will again try to push the price above $22. If they are successful, this will indicate the beginning of a new upward move. It is possible that AVAX price will then start its journey towards $30. Conversely, if the price turns down from $22, it will indicate that the bears are fiercely defending the level. This will increase the likelihood of a break below the 20-day EMA. If this happens, AVAX price is likely to remain stuck in the wide range for a while longer.
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