Investors await the SEC’s final decision on spot Bitcoin ETF applications. Amid this wait, Bitcoin is trading just below the $44,000 level. What are the important resistance levels to look out for in altcoins like Bitcoin and XRP Coin? Crypto analyst Rakesh Upadhyay breaks down the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
cryptokoin.comAs you follow from , volatility has increased over the past two days as investors speculate about the fate of spot Bitcoin exchange-traded fund (ETF) applications. Some analysts say the SEC will greenlight ETFs at an early date. However, Bloomberg ETF analyst James Seyffart predicts that approval will most likely occur between January 8-10.
Several analysts believe that in a classic case of buy the rumor, sell the news, Bitcoin could fall even if one or more Bitcoin ETFs are approved. But John Bollinger, creator of the Bollinger Bands volatility indicator, says otherwise. Bollinger expects Bitcoin to “go even higher.”
BTC, ETH, BNB, SOL and XRP Coin analysis
Bitcoin (BTC) price analysis
Bitcoin returned to its ascending triangle formation on January 3. This suggested that the sharp decline to the 50-day simple moving average ($41,205) could be a bear trap. The bulls will try to strengthen their position by pushing the price above the $44,700 resistance. If they do this, BTC will complete its bullish setup. It is possible that this could be followed by a rally to the overhead resistance zone between $50,000 and $52,000.
If the bears want to prevent an upward move, they will need to pull the price back below the triangle. A minor support holds at $40,000. However, if the price breaks below this level, the decline is likely to extend to $37,980.
Ethereum (ETH) price analysis
Ether struggled to break above the 20-day exponential moving average ($2,269) on January 4. But the bears did not allow this. The 20-day EMA has flattened out and the RSI is just below the midpoint. This points to a range-dependent movement in the near term. If the price breaks above the 20-day EMA, it is possible for ETH to jump to $2,400. A break and close above this resistance could open the way for a potential rally to $2,700 and then $3,000.
The first support on the downside is the 50-day SMA followed by $2,100. If it breaks the supports, ETH is likely to drop to $1,900.
Binance Coin (BNB) price analysis
BNB has been consolidating in an uptrend for the past few days. The bulls managed to keep the price above the 50% Fibonacci retracement level of $300, except for the sharp intraday decline on January 3. The rising 20-day EMA ($295) and the RSI in the positive zone show that the bulls are in control. If the price bounces back from the 20-day EMA, buyers will attempt to push BNB towards the overhead resistance at $338. If it breaks this hurdle, it is possible for BNB to start the next leg of the uptrend to $370 and then to $400.
A slight downside in favor of the bears is that the RSI has formed a negative divergence indicating weakening momentum. If the 20-day EMA cracks, BNB is likely to dive to the neckline.
Solana (SOL) price analysis
Solana broke below the 20-day EMA ($97) on January 3. However, the bears could not close below this level. The bulls attempted to start a relief rally on January 4. But the bears did not allow it. The price fell back to the 20-day EMA. This remains the key short-term level to keep an eye on.
If the price closes below the 20-day EMA, it is possible that the sell-off will gain momentum and SOL could decline towards the 50-day SMA ($77). Conversely, if the price turns up from the current level and breaks above the downtrend line, it will signal that the correction may have ended. SOL is likely to retest the high at $126 later.
Ripple (XRP Coin) price analysis
The bulls did not allow the XRP Coin price to close below $0.57 on January 3. Now they are trying to maintain the level again. The 20-day EMA ($0.61) has started to turn lower and the RSI is in the negative territory. This points to an advantage for XRP Coin bears.
A bounce from the current level is likely to face selling at the 20-day EMA. If XRP Coin price continues to decline or turns down from the overhead resistance, the chances of a close below $0.57 will increase. This, in turn, is possible for XRP Coin to initiate a downward move towards $0.50 and then towards $0.46. The bulls will need to push the XRP Coin price above the downtrend line to eliminate the bearish trend.
ADA, AVAX, DOGE, DOT and MATIC analysis
Cardano (ADA) price analysis
Buyers attempted to push Cardano back into the symmetrical triangle formation on January 4. But the bears held their ground. The bears will make another attempt to sink the price below the 50-day SMA ($0.51). If they are successful, it is possible for ADA to drop to the $0.46 breakout level.
This level is likely to attract strong buying by the bulls. This negative view will be invalidated in the near term if the price rises and settles above $0.64. Additionally, such a move would suggest aggressive buying at lower levels. ADA is likely to rise further towards the overhead resistance at $0.68.
Avalanche (AVAX) price analysis
The bulls pushed the Avalanche above the neckline of the head and shoulders formation on January 4. However, they failed to break the barrier at the 20-day EMA ($39.44).
The nearest support on the downside is $36. If it surpasses this level, it is possible for AVAX to drop to the 50-day SMA ($32.70). Buyers are expected to fiercely defend the zone between the 50-day SMA and $31. The bulls will need to push the price above the 20-day EMA and sustain it to signal that the correction may be over. It is possible for AVAX to rise to $44 later. If it manages to surpass this level, AVAX is likely to rise to $50.
Dogecoin (DOGE) price analysis
Dogecoin closed above $0.08 on January 3, as seen from the long tail on the candlestick. The bulls are keeping the price above $0.08. But it is struggling to mount a strong relief rally.
The moving averages are on the verge of a downtrend and the RSI is in the negative territory. This shows that sellers have the upper hand. If the price turns down from the 20-day EMA ($0.09), the bears will try to pull DOGE down to $0.07. The first sign of strength will be a breakout and close above the moving averages. This will open the doors for a rise to $0.10. The zone between $0.10 and $0.11 is likely to pose a major hurdle for the bulls.
Polkadot (DOT) price analysis
Polkadot’s recovery is facing a sell-off at the 20-day EMA ($7.90). This shows that bears are selling in rallies. The flattening 20-day EMA and the RSI just below the midpoint indicate a range-bound move in the near term. DOT is likely to fluctuate between $6.50 on the downside and $8.80 on the upside.
If the price rises above $8.80, it will signal the end of the corrective phase. DOT is likely to rise further to the overhead resistance at $9.59. Conversely, a decline below $6.50 is possible to start a deeper correction to $5.89.
Polygon (MATIC) price analysis
Polygon gained support from the 50-day SMA ($0.85) on January 3. However, the bulls failed to push the price above the $0.89 resistance on January 4. Bears and bulls are witnessing a tough fight near the 50-day SMA. If the price remains below the 50-day SMA, further selling is possible. In this case, it is possible that MATIC will drop to $0.70.
On the contrary, if the 50-day SMA holds, the bulls will try to use it as a launchpad. Thus, they will strive to push MATIC above the 20-day EMA ($0.90). If they do this, it is possible that MATIC will begin a march northward towards $1.
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