According to crypto analyst Rakesh Upadhyay, Bitcoin’s failure to recover from strong support levels raises the risk of a deeper correction that could negatively impact altcoins as well. What are the key support levels to hold in altcoins including Bitcoin and DOGE to prevent a deeper drop? The analyst examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
Failed to stay above the resistance of its narrow range, Bitcoin fell close to an important support level on July 18. According to Glassnode’s Bitcoin Accumulation Trend Score, the consolidation over the past few days looks like an accumulation phase. We saw a similar score in the accumulation stages between November-December and again March-April. cryptocoin.comAccording to CoinShares data, institutional investors continue to pour funds into digital asset investment products, which have risen to $742 million in the past four weeks. Bitcoin continues to attract the lion’s share of funds. Accordingly, $140 million inflows took place in the last week alone.
Mark Yusko, chief investment officer and founder of Morgan Creek Capital, said that the fair value of Bitcoin is $55,000 and markets are likely to “drag upwards towards this level.” Once BTC breaks this level, Yusko expects speculators to step in. Thus, he predicts an explosion will occur in 2024.
BTC, ETH, XRP, BNB and ADA analysis
Bitcoin (BTC) price analysis
Bitcoin broke below the 20-day exponential moving average (EMA) of $30,124 on July 17. In this move, it tested the important support of $29,500 on July 18. The long tail on the day’s candlestick shows that lower levels continue to attract buyers.
The 20-day EMA is flat and the relative strength index (RSI) is near the midpoint. This shows that there is a balance between supply and demand. If the buyers push the price above the 20-day EMA, a rally to $31,000 and then $31,805 is possible. Sellers are expected to fiercely guard this area. The next trend move could start with a break above $32,400 or a decline below $29,500. If the range breaks below $29,500, BTC is likely to drop to $27,500 and later to $26,000. On the contrary, if the bulls push the price above $32,400, it is possible for BTC to start a rally towards $40,000.
Ethereum (ETH) price analysis
The long tail on Ether’s July 17 and 18 candlestick shows that the bulls are buying lows from the 50-day simple moving average (SMA) to $1,853.
This indicates that ETH will be stuck between the 50-day SMA and $2,000 for a while. A minor improvement in favor of the bulls is that the 20-day EMA ($1,898) is gradually sloping upwards and the RSI is in the positive territory. If buyers push the price above $2,000, it is possible for ETH to start the next leg of the upward move towards $2,141. However, the bears are likely to have other plans. They will try to push the price below the 50-day SMA. If they do, ETH is likely to drop to $1,700 and eventually to $1,626.
Ripple (XRP) price analysis
Usually a vertical rally is followed by a sharp pullback and a period of consolidation. Presumably XRP is entering such a phase.
The bulls will attempt to push the price above $0.83 and retest the intraday high of July 13 at $0.94. However, they are likely to face stiff resistance from the bears. If the price drops from $0.83, XRP is likely to drop as low as $0.66. It is possible that this level will again attract strong buying from the bulls. This, too, is likely to keep the price range between $0.66 and $0.83 for a few days. On the contrary, if the bulls push the price above $0.94, XRP is likely to rise as high as $1.40.
Binance Coin (BNB) price analysis
The bulls have failed to push and sustain BNB above the 20-day EMA ($244) in the past two days. This shows that the bears are trying to turn the 20-day EMA into resistance.
The bears will try to further strengthen their position by pulling the price to the support line of the symmetrical triangle. This is an important level for the bulls to defend. Because a break below this could challenge the vital $220 support. Alternatively, if the bulls push the price above the 20-day EMA, it will suggest a solid buy lower. The bulls will then make another attempt to push the price above the triangle. If they manage to do so, it is possible for BNB to rise as high as $265.
Cardano (ADA) price analysis
ADA is likely to witness a tough battle between the bulls and bears near the $0.30 breakout level.
The 20-day EMA ($0.30) is gradually rising. Also, the RSI is in the positive territory. This shows that the bulls have a slight advantage. Buyers will need to push the price above $0.34 to show that the correction may be over. ADA could then rise as high as $0.38, where the bears can again make a strong defense. This positive view will be invalidated if the price declines and slides below $0.30. This will pave the way for a possible drop to the Bullish trendline and then to $0.26.
SOL, DOGE, MATIC, LTC and DOT analysis
Solana (SOL) price analysis
The long wick seen on the candlesticks from July 14-17 shows that the bears continue to sell in the rallies. The price turned down and settled below the $27.12 breakout on July 17.
The SOL could correct towards the 20-day EMA ($23.15), an important level to consider. If the price recovers from this level, the bulls will attempt to push the SOL back above $27.12. If they are successful, it is possible for SOL to move up to $29.12 and then $32.13. Contrary to this assumption, if the price drops and breaks below the 20-day EMA, it will indicate that the bulls are in a rush to exit. SOL is likely to drop to the 50-day SMA ($19.44) later.
Dogecoin (DOGE) price analysis
Buyers pushed DOGE above the overhead resistance of $0.07 on July 17 and July 19. However, the long wick on the candlestick indicates strong selling at higher levels.
The bulls managed to hold the DOGE price above the 20-day EMA ($0.07). But they struggle to overcome the general hurdle. If buyers fail to sustain DOGE above $0.07, the probability of a drop below the 50-day SMA ($0.07) increases. It is possible that this will keep the DOGE price between $0.06 and $0.07 for a few more days. If the bulls want to start a new bullish move, they will need to hold DOGE price above $0.07. It is possible for DOGE price to continue higher towards $0.08 and then $0.10.
Polygon (MATIC) price analysis
MATIC bounced off the 20-day EMA ($0.73) on July 17. However, the bulls failed to sustain higher levels. This shows that every relief rally has been sold out.
Moving averages are an important support to consider. If the bears sink the price below the 50-day SMA ($0.71), the advantage will be in favor of the sellers. It is possible for MATIC to drop as low as $0.60 later. The first resistance to watch on the upside is $0.80. If the bulls push the price above this level, MATIC is likely to retest the $0.89 level. A break and close above this resistance could mark the start of a new uptrend.
Litecoin (LTC) price analysis
LTC turned down from the overhead resistance of $106 on July 13. This shows that the bears are selling in the rallies.
The failure of the bulls to stop the pullback from the 20-day EMA ($94) indicates that the positive momentum is weakening. There is currently a minor support at the 50-day SMA ($90). However, if this level falls, it is possible for LTC to drop to $80. If the bulls want to avoid the decline, they will have to push the price above the 20-day EMA and protect it. If they do, LTC is likely to retest the overhead resistance zone of $106 to $115.
Polkadot (DOT) price analysis
The DOT has been hovering between the overhead resistance of $5.64 and the 50-day SMA ($5.03) for the past few days.
The horizontal 20-day EMA ($5.21) and the RSI near the midpoint indicate a balance between supply and demand. If the price breaks below the 50-day SMA, the advantage will be in favor of the sellers. It is possible for the DOT to drop as low as $4.74 later. This is an important level for the bulls to defend. Because if it breaks, DOT is likely to drop to $4.22. On the upside, the bulls will need to clear the zone between $5.64 and the downtrend line to gain the upper hand. In this case, DOT is likely to skyrocket to $7.
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