The bulls failed to sustain Bitcoin price above $52,000. This likely signaled the beginning of a short-term trend change in BTC and altcoins. What are the important support levels that can stop the decline in altcoins like Bitcoin and AVAX Coin? Crypto analyst Rakesh Upadhyay examines the top 10 cryptocurrencies to find out.
BTC, ETH, BNB, SOL and XRP Coin analysis
Bitcoin (BTC) price analysis
Bitcoin is struggling to hold above $52,000. This shows that the bears are fiercely defending the level. If the price falls below $50,000, short-term traders will likely give up. That is, they prefer to book profits. It is possible that this situation could pull BTC towards the 20-day exponential moving average ($48,842).
If the price rebounds with strength from the 20-day EMA, it would indicate that sentiment remains positive and traders are buying at lower levels. This will increase the chances of a rally above $52,000. BTC is likely to bounce to $60,000 later. Instead, if the price continues to decline and breaks below the 20-day EMA, it would signal the beginning of a pullback towards the 50-day simple moving average ($44,924).
Ethereum (ETH) price analysis
Ether retreated from the $3,000 psychological resistance on February 21. Thus, it pointed to profit booking by short-term investors. In a strong uptrend, corrections usually last between one and three days. Important support on the downside is $2,717. If the price bounces back with strength from $2,717, it will indicate that every minor dip has been bought aggressively. This will increase the chances of a break above $3,000. It is possible for ETH to rise as high as $3,300 later.
Conversely, if the bears sink the price below the 20-day EMA ($2,680), it would mark the beginning of a deeper correction towards the 50-day SMA ($2,467).
Binance Coin (BNB) price analysis
BNB started to rise after a short correction. Thus, it broke above the $367 resistance on February 21, signaling the resumption of the uptrend. The upward sloping moving averages and the RSI in the overbought zone indicate that the bulls are in command. If buyers sustain the price above $368, it is possible for BNB to gain momentum. Thus, it could rise towards $400.
Initial support on the downside is at the 20-day EMA ($336) and the next is at the 50-day SMA ($315). The bears will have to push the price below the 50-day SMA to indicate a trend reversal.
Solana (SOL) price analysis
cryptokoin.comAs you follow from , the recovery in Solana faded out at $115. The price then started to decline on February 19, indicating a lack of demand at higher levels. The bears pulled the price below the neckline of the inverted head and shoulders formation on February 21. Thus, it indicated that the upward momentum was weakening. The 50-day SMA is likely to act as a support. But it is difficult to last for a long time.
If the support is broken, SOL may drop to $93. This is an important level to consider. The first sign of strength will be a break above the downtrend line. A subsequent rally attempt by SOL towards the overhead resistance of $126 is possible.
Ripple (XRP) price analysis
XRP closed above the downtrend line on February 19. However, the bulls could not overcome the $0.57 hurdle. This shows that every small relief rally has been sold off. The bears are trying to pull the price below the moving averages. If they succeed, XRP is likely to fall towards the strong support at $0.46. Buyers are expected to defend this level vigorously.
If the price recovers from $0.46, XRP is likely to rise to $0.57. Also, it is possible that it will remain in this range for a while. A breakout and a close above $0.57 would indicate that the corrective phase may be over. XRP is likely to try to rise to $0.67 later.
ADA, DOGE, LINK, DOT and AVAX Coin analysis
Cardano (ADA) price analysis
ADA fell from $0.64 on February 20. Thus, it pointed to profit booking by short-term investors. It is possible for the price to reach the 20-day EMA ($0.57). Buyers will have to defend the 20-day EMA aggressively if they want to keep the upside intact. If they do so, ADA is likely to rise to $0.64 and eventually $0.68. A breakout and close above this resistance will signal the beginning of the next leg of the uptrend.
Conversely, if the price falls below the 20-day EMA, it will indicate that the bullish momentum is weakening. In this case, it is possible for ADA to consolidate in a wide range between $0.46 and $0.64 for a while.
Avalanche (AVAX Coin) price analysis
AVAX Coin bulls defended the 50-day SMA ($36) on February 20. However, the bears sold the recovery on AVAX to the 20-day EMA ($38.22). The 20-day EMA has flattened out and the RSI is just below the midpoint. This points to a range-bound movement in the near term. If the price breaks below the 50-day SMA, AVAX Coin price is likely to drop to $32, which is likely to act as a strong support.
A solid rebound from the support could keep the AVAX Coin price between $32 and $42 for a few days. On the upside, the bulls will need to push and sustain AVAX Coin price above $42 to complete the inverse head-and-shoulders formation and gain the upper hand.
Dogecoin (DOGE) price analysis
DOGE bounced off the 20-day EMA ($0.08) on February 18. However, the bulls could not break the barrier at $0.09. This indicates a negative sentiment where bears are selling in rallies.
If the price falls below the moving averages, DOGE is likely to fall to the bullish trend line. This is an important level for the bulls to defend. Because if they can’t do this, it is possible that DOGE will start to fall to $0.07. This negative view will be invalidated in the short term if the price recovers from the current level and rises above $0.09. This opens the doors for a possible rally to the $0.10 to $0.11 resistance zone.
Chainlink (LINK) price analysis
LINK bounced off the 20-day EMA ($18.81) on February 20. However, the bulls were unable to build on the recovery. The price turned down and broke below the 20-day EMA on February 21. The next stop on the downside is the $17.32 breakout level. This level is likely to witness a tough battle between bulls and bears.
If the price recovers strongly from $17.32, it is possible that LINK could rally towards the 20-day EMA and then the overhead resistance at $20.85. The zone between $17.32 and the 50-day SMA ($16.51) is likely to act as a formidable support on the downside. A break below this zone would indicate a potential trend change in the near term.
Polkadot (DOT) price analysis
The stalling of the DOT recovery near the 61.8% Fibonacci retracement level at $8.21 indicates that the bears continue to sell in rallies. DOT has reached the 50-day SMA ($7.18), which is an important level to pay attention to. If this level gives way, it will indicate that the bulls are losing control. DOT is then likely to fall to the neckline and then to $6.
The 20-day EMA has flattened. Also, the RSI is close to the midpoint. These also suggest range-bound action in the near term. If the price recovers from the neckline, it is possible for DOT to reach $8.21. It will also remain range bound between these two levels for a while. The bulls get back into the game with a close above $8.21.
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