Bitcoin and most major altcoins are bearish. However, the charts suggest that a recovery may be just around the corner, according to crypto analyst Rakesh Upadhyay. What are the key support levels that could attract buyers for major altcoins including Bitcoin and DOGE? The analyst examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
Bitcoin extended its decline on May 12. But Philip Swift, creator of LookIntoBitcoin, analyst Philip Swift does not expect a deep correction. “It’s interesting that the long/short ratio is going up while the price is trending down,” Swift says. One of the reasons keeping analysts on the rise is Bitcoin’s halving event, which has followed a certain cycle so far and analysts expect it to continue. Citing previous cycles, investor and entrepreneur Alistair Milne says the time to buy is now.
Daily cryptocurrency market performance / Source Coin360However, in the near term, Bitcoin may face pressure due to the relief rally in the US dollar index (DXY). Typically, DXY has an inverse correlation with Bitcoin’s performance.
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC): Sellers resolve indecision to the downside
Bitcoin formed a long-legged doji candlestick pattern on May 10, signaling indecision between the bulls and bears. Sellers resolved this on the downside by descending below the support line of the symmetrical triangle formation.
The moving averages concluded the downtrend as the 20-day exponential moving average ($28,142) dropped below the 50-day simple moving average ($28,496). Along with the relative strength index (RSI) in the negative region, this shows the bears are in command. The next target on the downside is $25,250. This is an important level for the bulls to defend. Because it’s the neckline of the inverted head and shoulders formation. If BTC price recovers from this level, the bulls will try to push BTC back above the resistance line. On the other hand, if it breaks below $25,250, it will likely open the doors for a potential drop to $20,000.
Ethereum (ET): Sentiment turned negative
Ether turned down from the 20-day EMA ($1,866) on May 10. This shows that sentiment has turned negative and traders are selling on rallies.
ETH broke below the support line on May 11th. Thus, it showed that the fix was restarted. It is possible for the altcoin to reach the 61.8% Fibonacci retracement level of $1,663 in the next stage. This level is likely to attract strong buying by the bulls. The first sign of strength will be a break and close above the 20-day EMA. Such a move would indicate that the bears are losing control. It is possible for ETH to reach the psychologically significant $2,000 level later on.
Binance Coin (BNB): Bulls will defend this level
BNB continued its journey southward. Thus, it reached near the close support at $300. This level acted as strong support on April 3 and March 15. Therefore, the bulls will try to defend this level again.
In the near term, the $300 level is likely to start a recovery. However, it is likely to face a strong sell-off at the 20-day EMA ($319). This will increase the probability of a break below $300. It is possible for BNB to drop towards the next strong support at $280 later. This negative view will be invalidated in the near term if the price rises and rises above the moving averages. BNB is likely to rally towards the overhead resistance of $338 later. For now, BNB could continue to oscillate in the wide range between $280 and $338.
Ripple (XRP): Demand is drying up at higher levels
The bulls are struggling to push and sustain XRP above $0.43. This indicates that demand is drying up at higher levels.
The falling 20-day EMA ($0.45) and the RSI near the oversold zone suggest the bears are in control. Sellers will try to push XRP below the $0.40 support in the next step. If they do, it’s possible for BNB to complete a 100% pullback. Thus, a drop to $0.36 is possible. On the contrary, if the XRP price bounces off $0.40, the bulls will again try to push and sustain BNB above $0.43. Buyers will need to push the price above the resistance line to signal the start of a sustained recovery.
Cardano (ADA): Bulls buy lows
The long tail on the ADA May 11 candlestick indicates that the bulls are trying to buy the dips towards the uptrend line.
The falling 20-day EMA ($0.38) and the RSI in the negative territory suggest that the bears have the upper hand. They will try to sell to the 20-day EMA in any attempt to recover. If this happens, ADA will fall back to the uptrend line. Repeated testing of a support level tends to weaken it. A break below the uptrend line could take ADA price to $0.33 followed by $0.30. On the contrary, if the bulls propel the price above the moving averages, Cardano price is likely to rise to the neckline of the inverse H&S pattern.
DOGE, MATIC, SOL, DOT and LTC analysis
Dogecoin (DOGE): Buying fades at higher levels
The bulls have managed to hold the $0.07 level for the past few days. But they failed to start a relief rally for DOGE. This indicates that buying is fading at higher levels.
The bears will try to further strengthen their positions by pulling DOGE price below $0.07. If they do, the DOGE price could drop as low as $0.06. This level is likely to act as a support. However, the bears are likely to pose a strong challenge to the downtrend line. If DOGE price turns down from the downtrend line and breaks below $0.06, selling momentum is possible. DOGE price is likely to drop to the critical $0.05 support later. A break and close above the downtrend line will be the first sign that selling pressure may ease.
Polygon (MATIC): Sales may have been overkill
MATIC extended its decline below the $0.94 break level. This has pushed the RSI into the oversold territory. It also shows that in the near term, the selling may have been overkill.
It is possible for MATIC to rise and retest the $0.94 breakdown level. This level is likely to witness a struggle between the bulls and bears. If MATIC price turns below $0.94, it will show that the bears have turned the level into resistance. This will increase the probability of a drop to $0.69. On the other hand, if buyers push the price above $0.94, it will indicate that the bulls are trying to make a comeback. It is possible that MATIC will then reach the resistance line where the bears will again make a strong defense.
Solana (LEFT): Bulls fail to initiate meaningful recovery
Solana has been trading near the $19.85 support level for the past four days. This shows that the bulls bought the lows but failed to initiate a meaningful recovery.
The 20-day EMA ($21.56) has started to turn down. Also, the RSI is in negative territory. This shows that the bears have a small advantage. If SOL price turns down from the current level or downtrend line, it will indicate that sentiment remains negative. It is possible for SOL to go down to $18.70 later. Conversely, if the bulls pierce the downtrend line, it will indicate that the SOL is stuck in the range between $19.85 and $27.12. The SOL could rise to $24 first and then attempt a rally to $27.12.
Polkadot (DOT): No buyers at higher levels
Polkadot turned up from strong support at $5.15 on May 10. However, the bulls could not put anything on this move. This indicates that there are no buyers at higher levels.
The bears used this opportunity and are trying to push the price below the vital support at $5.15. If they succeed, it will indicate that the next leg of the downward movement has begun. It is possible for the DOT to drop as low as $4.50 later. If DOT price reverses direction from the current level and rises above the 20-day EMA ($5.68), it will suggest a solid buy lower. It is possible for the DOT to rise to the 50-day SMA ($6.06) first and then to the downtrend line.
Litecoin (LTC): Bears attack every little rally
Litecoin bounced off the strong support at $75. However, it is facing a strong sell-off near $82. This shows that bears attack every little rally.
The bears will make another attempt to push the price below $75. If they do, LTC could resume the downtrend and slide towards the key support at $65. It is possible for buyers to vigorously defend this level.
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