Most of the major altcoins, including Bitcoin and DOGE, are witnessing stagnant price movements, which indicates a lack of buying interest from major players. Will buyers defend relevant support levels and start a strong recovery in Bitcoin and certain altcoins? Technical analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
Cryptocurrency market overview
Nonfarm payrolls rose 339,000 in May, beating economists’ expectations for an increase of 190,000. Despite this, US stock markets rose sharply on June 2nd. As you follow on Kriptokoin.com, several analysts have pointed out that the slower growth rate in hourly earnings, which is slightly below the estimates, and the rise in the unemployment rate may have encouraged the market. The rally in the equity markets failed to act as a tailwind for the crypto markets stuck in a range. Galaxy Digital CEO Mike Novogratz said in an interview with CNBC that the lack of enthusiasm in the crypto markets is due to the lack of institutional purchases.
Daily cryptocurrency market performance / Source: Coin360Bitcoin’s historical performance in June does not give the bulls or the bears a clear advantage. According to CoinGlass data, an equal number of positive and negative monthly closes occurred in June between 2013 and 2022.
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC) price analysis
BTC has been trading inside a descending channel formation for the past few days. The price closed below the 20-day exponential moving average (EMA) of $27,239 on May 31. But bears are struggling to maintain lower levels.
The bulls will try to push the price above the 20-day EMA. If they do, it is possible for BTC to reach the resistance line where the bears are expected to make a strong defense. If the price turns down from the resistance line, it will indicate that BTC will extend its stay in the channel for a while. The most important support to watch on the downside is $25,250. Because a break below this will show that the bears are in control. The first sign of strength on the upside will be a break and close above the channel. Bitcoin is likely to start its journey towards $31,000 later.
Ethereum (ETH) price analysis
The bulls have successfully thwarted the bears’ attempts to pull Ether back into the falling wedge pattern. This shows that the bulls are trying to turn the resistance line into support.
ETH has rebounded from the 20-day EMA ($1,855). This indicated a change in sentiment from selling in rallies to buying in declines. The bulls will then try to push the price above $1,927. Thus, it will retest the hard overhead resistance of $2,000. This positive view will be invalidated in the near term if the price turns down and re-enters the wedge. This could result in trapping aggressive bulls and liquidating the long. It is possible that ETH will later fall towards the support line of the wedge.
Binance Coin (BNB) price analysis
BNB has been consolidating in a narrow range between $300 and $317 for the past few days. This indicates indecision between the bulls and bears about the next directional move.
The gradually falling 20-day EMA ($310) and the relative strength index (RSI) below the midpoint give the bears a slight advantage. If the price turns down from the 20-day EMA, it will increase the probability of a drop below $300. If this happens, a drop to the next support at $280 is possible for BNB. If the bulls push the price above the 20-day EMA, BNB is likely to reach the overhead resistance of $317. A break and close above this level will indicate the start of a rise towards $334 and then $350.
Ripple (XRP) price analysis
Buyers are trying to prevent XRP’s pullback above the 38.2% Fibonacci retracement level of $0.49. A shallow correction indicates that traders are willing to buy on small dips. This is also a positive sign.
The bulls will try to push the price above the immediate resistance at $0.53. If they do, it’s possible for XRP to make a bullish attempt as low as $0.56. This level is expected to be a major obstacle. However, if the bulls overcome this, XRP is likely to start a new uptrend towards $0.80. Alternatively, if the price drops from the current level and dips below $0.49, it will indicate that the bulls have booked profits. XRP is likely to drop to the 20-day EMA ($0.48) and then the 50-day simple moving average (SMA) to $0.47.
Cardano (ADA) price analysis
Sellers tried to pull Cardano below the uptrend line of the ascending triangle formation on June 1. But the bulls held their ground.
ADA broke above the 20-day EMA ($0.37). Therefore, the bulls will try to push the price above the 50-day SMA ($0.38). If successful, ADA could gradually climb to $0.42 and then the overhead resistance of $0.44. Conversely, if the price turns below the current level or the 50-day SMA, it will indicate that the bears are selling in rallies. This will increase the likelihood of a break below the uptrend line. It is possible that ADA will then start its descent to the next support at $0.30.
DOGE, MATIC, SOL, DOT and LTC analysis
Dogecoin (DOGE) price analysis
The bulls again managed to hold DOGE above the horizontal support at $0.07. However, they are struggling to push the price above the 20-day EMA ($0.07).
This narrow range trade is ripe for a breakout. If buyers push the price above the 20-day EMA and sustain it, DOGE is likely to rise as high as $0.08. This level is likely to act as a strong barrier again. If the price declines, DOGE is likely to trade in the $0.07 to $0.08 range for a while. If the price drops from the 20-day EMA, it will indicate that the bears are selling on every minor rally. The bears will then try to push the DOGE price below $0.07. Thus, they will extend the correction to $0.06.
Polygon (MATIC) price analysis
MATIC broke below the 20-day EMA ($0.90) on May 30. But the bears failed to sustain lower levels. This suggests buying on dips.
The flat 20-day EMA and the RSI near the midpoint indicate a balance between supply and demand. If the bulls push the price above the 20-day EMA, MATIC will attempt to surpass the $0.94 resistance once again. If this happens, it is possible for MATIC to start its northward march towards the bearish trend line. Conversely, if the price drops from $0.94 and breaks below the 20-day EMA, it will indicate that the bears are attempting to turn the level into resistance. This is also likely to keep MATIC in the $0.82 to $0.94 range for a few more days.
Solana (SOL) price analysis
SOL has been trading between moving averages for the past few days. The bears tried to push the price below the 20-day EMA ($20.58) on May 31 and June 1. But the bulls did not budge.
Narrow gap trading is unlikely to continue for long. Buyers will try to push the price above the 50-day SMA ($21.50). If they manage to do so, it is possible for SOL to rally to $24 and then $27.12. Instead, if the price drops from the 50-day SMA and dips below the 20-day EMA, it will indicate that supply has exceeded demand. SOL is likely to drop to vital support at $18.70 later. However, the bulls are likely to fiercely defend this level.
Polkadot (DOT) price analysis
The DOT has been consolidating in a tight range between $5.15 and $5.56 for the past few days.
The price bounced back from the $5.15 support on June 2. However, the bulls are facing selling at the 20-day EMA ($5.37). This shows that every relief rally has been sold out. If the price continues to drop below $5.15, it is possible for the DOT to start the next leg of the downtrend towards $4.22. Buyers have a difficult task ahead of them. If they want to avoid a decline, they will need to push the price above the 50-day SMA ($5.69). The DOT could then attempt a recovery towards $6 and eventually the downtrend line.
Litecoin (LTC) price analysis
LTC fell below the moving averages on May 31. However, the bulls have bought lower, as seen by the long tail on the day’s candlestick.
Buyers pushed the price above the general barrier of $95 on June 1. However, they haven’t been able to close on it yet. If they do, it is possible for LTC to rise to the resistance line of the symmetrical triangle formation. If the price drops sharply from the resistance line, it will indicate that LTC will continue to oscillate inside the triangle for a while. On the other hand, a break and close above the triangle will indicate the start of a new uptrend. LTC could reach $115 first and then start its march towards the $142 formation target.
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