Several major altcoins continue to show weakness, including Bitcoin and DOGE. However, several data points favor the bulls in the short term, according to crypto analyst Rakesh Upadhyay. From a macro perspective, it looks like there could be short-term weakness. But lower levels are likely to be bought. What are the important support levels to watch out for? The analyst examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
Bitcoin has been trading between $25,333 and $26,156 since September 1. Typically, a volatility squeeze is followed by an expansion in volatility. However, it is difficult to predict the direction of the fracture precisely. CoinGlass data shows that Bitcoin fell for the sixth year in a row in September. This historical data could keep the bulls at bay and encourage the bears in the near term. Additionally, the US Dollar Index (DXY), which has an inverse correlation with Bitcoin, has risen sharply over the past few weeks. Both situations likely indicate that Bitcoin will remain under pressure in the short term.
Daily cryptocurrency market performance. Source: Coin360It’s not all gloom and doom for crypto bulls. Because lower levels are likely to attract buyers. The possibility of one or more Bitcoin spot exchange-traded fund applications gaining approval could limit the downside. As you follow on Kriptokoin.com, many analysts say that this event will be a big rise for Bitcoin. It is possible that any positive news on this issue will increase prices.
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC) price analysis
Bitcoin has been trading below $26,000 for the last two days. Moreover, the bears are trying to pull the price towards the vital $24,800 support. Downward sloping moving averages indicate sellers’ advantage. However, the positive divergence in the relative strength index (RSI) indicates that the downward momentum will weaken.
Buyers will need to push the price above $26,833 and sustain it to start a relief rally towards the 50-day simple moving average (SMA) ($28,048). Such a move would indicate that the price would remain stuck in the broad range between $24,800 and $31,000. Meanwhile, the bears are likely to have other plans. They will try to sink the price below the $24,800-24,000 support zone. If they manage to do this, the sell-off could accelerate and BTC could drop to $20,000.
Ethereum (ETH) price analysis
The long tail on Ether’s September 4 and 5 candlestick indicates that the bulls bought dips below the immediate support at $1,626. However, there is no follow-on buying at higher levels. This means the bears are selling on rallies near $1,650. This tight range trading is unlikely to continue for long.
If the price declines and stays below $1,600, it would indicate that the bears have gained control. There is a minor support at $1,550. However, if it breaks this support, it is possible for ETH to drop to $1,368. On the upside, the bears are expected to fiercely defend the zone between $1,650 and the 20-day exponential moving average (EMA) ($1,674). If buyers break this barrier, ETH is likely to rise to the 50-day SMA ($1,772).
Binance Coin (BNB) price analysis
BNB has been trading below the important level of $220 for the past few days. However, the bears could not take advantage of this opportunity. This shows that sales are decreasing at lower levels. This could cause BNB to remain stuck between $220 and $200 for a while longer.
A tight consolidation below the breakdown level increases the likelihood of further declines. If it breaks the $200 support, it is possible that BNB will continue its downtrend. The next major support on the downside lies at $183. If buyers want to start a comeback, they will need to push the price above $220. This would indicate solid buying at lower levels. It is possible that BNB will then attempt a rally towards the downtrend line.
Ripple (XRP) price analysis
XRP has been holding on to the $0.50 support for the last few days. Failure to initiate a strong recovery increases the likelihood of a breakout to the downside.
A break and close below $0.50 would indicate that XRP could extend its stay in the $0.56 – $0.41 range for a few more days. There is no significant support between $0.50 and $0.41. Therefore, it is possible that the decline will be rapid. Another possibility is that the price turns up from the current level and moves above the 20-day EMA ($0.52). If this happens, it is possible for XRP to rise to $0.56. This is an important level to consider.
Cardano (ADA) price analysis
Cardano’s ADA has been trading in a tight range for the past few days. This shows that bulls and bears are playing it safe and not making big bets.
Downward sloping moving averages and the RSI in the negative zone indicate that the bears have a slight advantage. If the price falls below $0.25, the bears will try to sink ADA to $0.24. Conversely, a breakout and close above the 20-day EMA ($0.26) would be the first sign of strength. This would pave the way for a rise to the 50-day SMA ($0.28). Buyers will need to overcome this hurdle to initiate a sustained recovery.
DOGE, SOL, TON, DOT and MATIC analysis
Dogecoin (DOGE) price analysis
DOGE price reached the 20-day EMA ($0.06) on September 6. This suggests that the bulls are trying to start a relief rally. However, the bears are unlikely to give up easily. Therefore, they will make a strong defense at the 20-day EMA.
If DOGE declines sharply, the bears will try to strengthen their position by pushing the DOGE price below $0.06. If they succeed, it is possible that they could extend the DOGE decline to the next support at $0.055. On the upside, a breakout and close above the 20-day EMA would be the first sign that the selling pressure on DOGE is easing. It is possible that this could start a rally to the 50-day SMA ($0.07) and then to $0.08.
Solana (SOL) price analysis
The SOL recovery attempt is facing a strong sell-off at the downtrend line. This shows that the bears are defending this level aggressively. If the price drops below $19, it is possible for SOL to continue its downtrend. The first support on the downside is 18d, the next one is $16.
Expectations are that buyers will defend this level strongly. The first indication of strength would be a breakout and close above the 20-day EMA ($20.69). It is possible that this could start a stronger rebound towards the 50-day SMA ($22.70). It is possible that this level will again act as a roadblock. But if the bulls clear this, SOL is likely to attempt a rally to $25.42.
Toncoin (TON) price analysis
The sharp rise in Toncoin (TON) pushed the RSI into overbought territory, indicating that the rally had gotten ahead of itself. This typically leads to a correction or consolidation, and that’s what happened. The bears’ profit booking pulled the price towards the 20-day EMA ($1.64). This remains the key support to watch out for.
If the price bounces back from the 20-day EMA, it will indicate that sentiment remains positive and traders are buying on dips. It is possible that this could increase the price to $2.07. If this level gives way, the rally is likely to extend to $2.38. Alternatively, if the 20-day EMA cracks, it will indicate that the bulls are losing control. In this case, it is possible for TON to decline to $1.53 and then to the 50-day SMA ($1.42).
Polkadot (DOT) price analysis
Buyers are having a hard time sparking a strong recovery in DOT. This shows that the bears are keeping the pressure. Downward sloping moving averages and the RSI near the oversold zone increase the likelihood of a breakout to the downside.
If it surpasses the $4.22 level, it is possible that DOT could slide to the next major support at $4. Contrary to this assumption, if the price turns up from the current level, the bears will try to stop the recovery at the 20-day EMA ($4.44) and again at the downtrend line. Buyers will need to overcome this hurdle to indicate a potential trend change.
Polygon (MATIC) price analysis
Polygon’s MATIC reached the 20-day EMA ($0.57) on September 5. However, the bulls could not overcome this obstacle. This suggests that demand is drying up at higher levels. Now the bears will try to pull the price down to the important support of $0.50. This remains a key level to watch in the near term. Because a break below will continue the downtrend.
MATIC then risks falling to $0.45. If the bulls want to avoid downside, they will need to quickly push the price above the 20-day EMA. It is possible that this could start a stronger recovery towards the overhead resistance at $0.60 and then $0.64. This level is likely to witness hard sales by the bears again.
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