Investors expect the Fed to keep interest rates steady at its meeting this week. Amidst this wait, Bitcoin and certain altcoins are trying to make a comeback. Can certain altcoins, including Bitcoin and DOGE, extend their recovery further, or will the bears push the price lower? Crypto analyst Rakesh Upadhyay examines the charts to find out.
An overview of the cryptocurrency market
The bears’ failure to push Bitcoin’s price below the $25,000 support sparked buying interest last week. Positive momentum increased further at the beginning of the new week. Now buyers are trying to continue Bitcoin’s momentum. As you follow from Kriptokoin.com, market participants expect the Federal Reserve will not raise interest rates again this year. That’s why the market looks buoyant. CME FedWatchTool shows there is a 58% chance that the Fed funds rate will remain at its current level even at the December meeting.
Daily cryptocurrency market performance. Source: Coin360This may be one of the reasons why the strength in the Dollar Index (DXY) has not negatively affected the Bitcoin price. However, since it is known that the last 10 days of September are in favor of the bears, investors need to be careful.
BTC, ETH, BNB and XRP analysis
Bitcoin (BTC) price analysis
Bitcoin has been trading above the 20-day EMA ($26,394) since September 14. This shows that the bulls have turned this level into support. Buyers are trying to further strengthen their positions by pushing the price above the 50-day SMA ($27,255).
The bears are expected to mount a strong challenge in the zone between the 50-day SMA and the overhead resistance at $28,143. If the price drops sharply from this zone, it will indicate that BTC will remain between $24,800 and $28,143 for a few days. On the other hand, if the bulls push the price above $28,143, it will pave the way for $30,000 and $31,000 as the next targets. In general, time is running out for the bears. If they want to regain control, they will need to pull the price back below the 20-day EMA quickly.
Ethereum (ETH) price analysis
After struggling near the 20-day EMA ($1,639) for the past few days, the bulls managed to push Ether above overhead resistance on September 18. The 20-day EMA is flattening and the relative strength index (RSI) is near the midpoint. This shows that the bulls are on the comeback.
If buyers keep the price above the 20-day EMA, it is possible for ETH to rise first to the 50-day SMA ($1,712) and then to $1,750. A break above this level would signal a short-term double bottom. The formation target of this bullish pattern is $1,959. However, the bears are likely to have other plans. They will try to push the price below the 20-day EMA and trap the aggressive bulls. A break below $1,600 could possibly start a downside move towards the strong support at $1,531.
Binance Coin (BNB) price analysis
BNB broke above the 20-day EMA ($215) on September 17. Thus, it showed that the bearish momentum was weakening. It is possible for the price to reach the 50-day SMA (at 224d) in the next phase. The bears are likely to face stiff resistance in the area between the 50-day SMA and $235. If the price turns down from this region, it will indicate that BNB will remain between $ 200 and $ 235 for a while.
The flat 20-day EMA and RSI near the midpoint also indicate a consolidation in the near term. Instead, if the bears sink the price below the 20-day EMA, it is possible that BNB could retest the vital support near $200. Repeated testing of a support level within a short range tends to weaken it. If it breaks this level, BNB is likely to drop to $183.
Ripple (XRP) price analysis
XRP recovery is facing selling near the 20-day EMA ($0.50). But the bulls did not give up and are trying to push the price above the resistance. If buyers push the price above the 20-day EMA, it is possible for XRP to rise as high as $0.56. However, this level may be a difficult barrier for the bulls to overcome.
On the contrary, if the price turns down from the current level, it will indicate that the bears are fiercely protecting the 20-day EMA. There is minor support at the uptrend line. But if this level cracks, XRP risks falling to $0.45 and eventually $0.41.
ADA, DOGE, TON and SOL analysis
Cardano (ADA) price analysis
Cardano continues to be stuck between the 20-day EMA ($0.25) and the critical support at $0.24. This narrow range trade is unlikely to continue for long. Therefore, a breakout may be around the corner.
A positive divergence on the RSI indicates that selling pressure is easing. If the uncertainty resolves to the upside, it will pave the way for a possible rally to the overhead resistance of $0.28. Conversely, if the price falls below $0.24, it will indicate that the bears have asserted their superiority. This will likely signal the beginning of the next leg of the downtrend. ADA is then likely to drop to $0.22.
Dogecoin (DOGE) price analysis
DOGE has been stuck between the 20-day EMA ($0.06) and the horizontal support at $0.06 for the past few days. Generally, a compression in volatility is followed by a range widening. If DOGE price rises and closes above the 20-day EMA, it will indicate that the bulls are attempting a comeback.
It is possible for DOGE price to rise up to $0.07 later. However, buyers will need to overcome this hurdle to initiate a rally towards $0.08. This positive view will be invalidated if DOGE price declines and breaks below the $0.06 support. This, in turn, is possible to push the DOGE price to the next support at $0.055. Bulls need to defend this level fiercely.
Toncoin (TON) price analysis
The long wick on Toncoin’s (TON) September 16 and 17 candlesticks suggests traders are booking profits near the overhead resistance at $2.59.
The overbought level on the RSI indicates a possible correction or range formation in the near term. However, the bulls did not give up and are trying to push the TON price above $2.59. If they achieve this, TON is likely to gain momentum. Thus, it is possible for it to jump to $3. The important support to watch on the downside is $2.25. If this level gives way, TON is likely to initiate a deeper correction to the next support at $2.07.
Solana (SOL) price analysis
SOL has been trading near the 20-day EMA ($19.47) for the past few days. However, Solana broke above resistance on September 18. The 20-day EMA is flattening and the RSI is near the midpoint. This shows that the bears have lost control.
Buyers will attempt to consolidate their positions further by pushing the price towards the overhead resistance at $22.30. This level will likely attract sellers. If the bulls fail to sustain the price above the 20-day EMA, it will indicate that the bears are selling higher. An initial support on the downside is $18.50. If this level is breached, SOL risks falling towards the next major support at $17.33.
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