Prices of most altcoins fell, including Bitcoin and DOGE. They are now trying to retest the lower support levels. What are the key support levels bulls need to defend to prevent a collapse in Bitcoin and selected altcoins? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
As you follow on Kriptokoin.com, the lack of a decisive catalyst and the strength in the US Dollar Index (DXY) kept the recovery of risky assets in check. Bitcoin (BTC) is stuck in a tight range looking for this hard breakout. The longer Bitcoin spends in the range, the bigger the resulting breakout from it will be.
The short-term uncertainty in cryptocurrencies does not seem to have changed the long-term view of institutional investors. Robin Vince, CEO of BNY Mellon, said that a survey commissioned by the bank showed that 91% of institutional investors are willing to invest in some type of tokenized asset in the next few years.
Daily cryptocurrency market performance / Source: Coin360While some believe institutions are slow to transition to crypto, Coinbase senior advisor John D’Agostino thinks otherwise. “Institutional inertia is a very real thing,” D’Agostino says in an interview with SALT. But he notes that when it comes to digital assets, institutional adoption is “moving very, very fast.” Now it’s time for analysis…
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC)
The bears successfully defended the 50-day simple moving average (SMA) ($19,659) on Oct. 17 and 18. The failure to break through this hurdle likely spurred aggressive bulls to take profits and bears to initiate short positions. Thus, BTC bounced back below the 20-day exponential moving average (EMA) ($19,384) on October 18.
Sellers will once again attempt to challenge the immediate support at $18,843. If this level breaks, it is possible for selling to increase and BTC to drop to the critical support zone between $18,125 and $17,622. The bears will defend this area with all their might. Because, a break below this is possible to initiate the next leg of the downtrend. The first sign of strength will be a break and close above the downtrend line that will attract more buying and push the price towards $20,500. The bulls will have to break through this hurdle to signal a possible short-term trend change. It is possible for BTC to rally towards the next resistance at $22,800 later.
Ethereum (ETH)
ETH re-entered the symmetrical triangle pattern on October 17. However, the bulls failed to sustain the recovery. On October 18, the price dropped and the bears are trying to push the price down to $1,263.
The slowly descending 20-day EMA ($1,320) and the RSI in the negative territory suggest that the bears are at a marginal advantage. If the price dips below $1,263, a drop to $1,190 is likely. Conversely, if the price rises from the current level or the support at $1,263, this will indicate that lower levels are attracting buyers. The bulls will then try to push the price above the resistance line of the triangle. If they succeed, ETH is likely to rise to the downtrend line of the descending channel. A break above this resistance likely signals the end of the downtrend.
Binance Coin (BNB)
BNB has been consolidating between $258 and $300 for the past few days. Despite this, the bears are trying to gain the upper hand by defending the moving averages.
Sellers will now try to push the price towards the support of the range at $258. Repeated testing of a support level in a short period of time indicates that it tends to weaken it. If this level gives way, a drop to the next support at $216 is possible for BNB. The slowly descending 20-day EMA ($275) and a relative strength index (RSI) near 45 suggest that the bears have a slight advantage. Contrary to this assumption, if the price rises and rises above the moving averages, BNB is likely to extend its stay in the range and rise to the overhead resistance at $300.
Ripple (XRP)
XRP rallied and closed above the 20-day EMA ($0.47) on Oct. 17. However, the bulls failed to develop this advantage. This shows that the bears are selling in the rallies.
The price fell sharply and broke below the 20-day EMA on October 18. Selling intensified and XRP fell to the support line of the triangle. This is an important level to watch out for in the near term. Because, a break below this is possible to bring XRP down to $0.41. On the upside, the first sign of strength will be a break and a close above $0.49. The bulls will then try to pull the price into the high zone between the resistance line and $0.56. A break and close above this zone is likely to indicate a resumption of the uptrend.
Cardano (ADA)
In a strong trend, the relief rally usually lasts one to three days. That’s what’s happening with Cardano (ADA). After the two-day recovery on October 18, the price dropped. This shows that the bears are selling on every small rally.
Bears will try to increase their advantage. Thus, it will sink ADA to the support line of the falling wedge. If this support is also broken, it is possible that the selling will accelerate and ADA will drop to $0.30. If the bulls want to avoid a collapse, they will have to quickly push the price above the 20-day EMA ($0.39). It is possible that ADA will then rise to the resistance line of the wedge. A break above this level will likely signal a potential trend change.
SOL, DOGE, DOT, MATIC and SHIB analysis
Left (LEFT)
The bulls were unable to push the price back to the downtrend line as the bears stopped rebounding at the 20-day EMA ($31.40) on Oct. 18. Solana (SOL) is back to the strong support zone between $30 and $29.42.
If the price bounces back from the current level, the bulls will again try to push the SOL to the downtrend line. Buyers will have to break through this hurdle to open the doors to a possible rally to $35.50. However, the bears may have other plans. They will try to push the price below $29.42 and challenge the intraday low of $27.87 on October 13. This level will likely attract strong buying from the bulls. However, if the bears manage to break the support, the next stop will likely be $26.
Dogecoin (DOGE)
DOGE broke the 20-day EMA ($0.06) on Oct. 18. However, it faced stiff opposition at the 50-day SMA ($0.06). This shows that sentiment is negative and traders are selling on small rallies.
The bears will try to push the DOGE price down to the support around $0.06. The bulls had successfully defended this level on the previous two occasions. Therefore, they will try their performance again and again. If the price bounces back from the support, the DOGE price is likely to climb back to the moving averages and Buyers will have to break through this hurdle to establish a rally to $0.07. Conversely, if the price breaks below the support, the DOGE could drop to the June low of $0.05. It is possible for the bulls to defend this level with all their might.
Polkadot (DOT)
Buyers failed to push Polkadot above the 20-day EMA ($6.27) on Oct. 17 and 18. This indicates that the bears are fiercely defending this level.
Sellers will try to further strengthen their advantage by pulling the price below the vital support below $6. If they are successful, it is possible that the sell-off will accelerate and the DOT will drop to $5.68. If this level is also broken, the next stop will likely be $5.36. Alternatively, if the price forcibly rises above $6, it will indicate that the bulls are piling up on the dips. Buyers will then try to break through the overall barrier at the 20-day EMA again. Thus, it will push the price towards $6.64.
Polygon (MATIC)
MATIC broke above the downtrend line on October 17 and closed. This indicates that a sustained recovery has begun in the near term.
A rally to $0.94 is possible for MATIC, where the bears are likely to form a strong defense. If the price drops from this level, but bounces back from the 20-day EMA ($0.81), it indicates that sentiment has turned positive and traders are buying on the dips. It is possible that this will increase the chances of a rally to $1.05. Alternatively, if the price drops and dips below the moving averages, it would likely suggest that the recent breakout will be a bull trap. A drop to $0.69 is possible for MATIC later.
Shiba Inu (SHIB)
SHIB’s recovery failed near the 20-day EMA ($0.00011). Thus, the price declined to a strong support at $0.000010.
The downward sloping moving averages and the RSI below 37 suggest that the bears have prevailed. If the price dips below $0.000010, SHIB is likely to drop to $0.000009 and then the critical support at $0.000007. If the bulls want to prevent the SHIB from going downhill, they will have to quickly push the price above the 20-day EMA. SHIB is likely to rally to the 50-day SMA ($0.00011) and then to $0.000014 later on.
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