Prices of many altcoins fell, including Bitcoin and DOGE. They are now trying to retest the underlying footholds. What precious footholds do 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
Koindeks.com As you’ve followed on , the lack of a decisive catalyst and 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 power breakout. The longer Bitcoin spends in the range, the bigger the resulting break 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 a bank-commissioned survey showed that 91% of institutional investors are willing to invest in some type of tokenized asset over the next few years.
While 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 corporate adoption “moves very, very quickly” when it comes to digital assets. Now it’s time for analysis…
BTC, ETH, BNB, XRP and ADA analysis
The bears successfully defended the 50-day easy moving average (SMA) ($19,659) on Oct. 17 and 18. The failure to break through this mania likely encouraged aggressive bulls to take profits and bears to initiate shorts. Thus, BTC bounced back below the 20-day exponential moving average (EMA) ($19,384) on October 18.
Sellers will once again try to challenge the immediate foothold at $18,843. If this level breaks down, it is possible for selling to increase and BTC to drop into the critical reinforcement zone mid $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 strength sign will be a break and close above the downtrend line that will attract more purchases and push the price towards $20,500. The bulls will have to break through this snag to signal a possible short-term trend change. It is possible for BTC to rise to the next resistance at $22,800 without fail.
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, ETH is likely to drop to $1,190. Conversely, if the price rises from the current level or the underlying $1,263, it 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 do, it is possible for ETH 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. In contrast, the bears are trying to gain the upper hand by defending the moving averages.
Sellers will now try to push the price to the reinforcement of the range at $258. Repeatedly testing a booster level over 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 the 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.
XRP rallied and closed above the 20-day EMA ($0.47) on Oct. 17. However, the bulls could not 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 has weighed on and XRP has dropped to the mainstay of the triangle. This is a valuable 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 strength sign will be a break and a close above $0.49. The bulls will then try to drag the price down to the top zone between the resistance line and mid $0.56. A break and close above this zone is likely to indicate a resumption of the uptrend.
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. As such, it will sink the ADA into the reinforcement limit of the falling wedge. If this reinforcement 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 push the price above the 20-day EMA ($0.39) in a rapid form. ADA is likely to rise to the resistance line of the wedge later on. A break above this level will likely signal a potential change in trend.
SOL, DOGE, DOT, MATIC and SHIB analysis
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 in the strong reinforcement zone at mid-$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 mania 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 reinforcement, the next stop will likely be $26.
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 reinforcement, it is possible for DOGE price to rise back to the moving averages. Buyers will have to break through this mania to establish a rally to $0.07. On the contrary, if the price breaks below the support, DOGE could drop to the June low of $0.05. It is possible for the bulls to defend this level with all their might.
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 pushing the price below the vital boost of $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 general mania at the 20-day EMA again. Thus, it will push the price towards $6.64.
MATIC broke above the downtrend line on October 17 and closed. This indicates that a recovery has always started 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 the critical support at $0.000009 and subsequently 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. It is possible for SHIB to later rise to the 50-day SMA ($0.00011) and subsequently to $0.000014.