At the beginning of the week, Altcoin prices dropped drastically when the United States Securities and Exchange Commission (SEC) filed lawsuits against the two largest cryptocurrency exchanges, Binance and Coinbase. In addition to the action taken against the two exchanges, investors are anxious as the SEC has identified 23 cryptocurrencies as securities in the two cases, bringing the total number of digital currencies labeled as securities by the SEC to 67.
Amidst the chaos, a small blessing is that Bitcoin (BTC) and Ether (ETH) have remained relatively strong. This implies that institutional investors are not in a state of panic and are not liquidating their holdings. Because of their superior performance, Bitcoin’s market share has reached a yearly peak of 47.6% and Ether’s to 20%.
The foreseeable future is likely to be filled with uncertainty, which will likely dissuade many investors from participating. In the meantime, those cryptocurrencies which have withstood the market downturn are likely to perform well when sentiment begins to improve.
Let’s examine the top-5 cryptocurrencies that are attempting to stay above their respective support levels and are striving to begin a recovery. What are the significant support and resistance levels to monitor?
Bitcoin price analysis
On June 10, Bitcoin plunged to the essential support level of $25,250, demonstrating that the bears are maintaining their force. Testing a support level recurrently within short periods of time has a tendency to reduce its strength.
The downward sloping moving averages and the Relative Strength Index (RSI) being in negative territory suggest that bears are in charge. If the support zone between $25,250 and $23,896 is breached, there could be a sell-off in the BTC/USDT pair. This could cause the pair to plunge to the psychologically important level of $20,000. Buyers are likely to fiercely defend this level.
If bulls wish to avoid a sharp drop, they must rapidly raise the cost beyond the 20-day exponential moving average ($26,721) to demonstrate strong interest at lower levels. The pair could first ascend to the 50-day simple moving average ($27,464) and then to the resistance line of the channel. To show the continuation of the uptrend, buyers will have to push the price above this level.
The 4-hour chart reveals that the rebound from the $25,250 support is being met with resistance from the 20-EMA, which implies that the bulls are not being given a chance to regain control. For the bears to strengthen their grip, they must push the price beneath $25,250.
If the price increases and surpasses the 20-EMA, the pair has the potential to increase up to the 50-SMA. If this level is exceeded, the pair is likely to reach $27,400.
Ether price analysis
Ether has been going through a period of adjustment over the past few days. Bears succeeded in pushing the cost below the $1,755 50% Fibonacci retracement mark on June 10, but the bulls kept a collapse from happening by protecting the powerful backing at $1,700.
The bulls could attempt to initiate a recovery rally that could reach the 20-day EMA ($1,835). This is a significant level to be aware of, as a break and close above it would imply that ETH/USDT may remain confined between $1,700 and $2,000 for a while.
Sellers, on the other hand, are attempting to slow the recovery and push the price beneath the $1,700 support. If they succeed, the pair could begin another stage of the correction. There is a slight support at $1,600, but if it is not able to withstand, the pair could plummet to $1,352.
The 4-hour chart indicates that the bulls had been firmly defending the $1,700 level before, and they may attempt to do so again. For buyers to initiate a sustained uptrend that could send the price to $1,920, they must overcome the impediments posed by the moving averages.
If the price decreases from its current level or the moving averages, the bears may attempt to push the pair below $1,700. If successful, there could be an increase in selling activity, potentially bringing the pair back down to $1,352.
XRP price analysis
XRP (XRP) declined from the resistance level close to $0.56 on June 10 and plummeted beneath the 20-day EMA ($0.50).
However, a hopeful indication is that the buyers immediately bought the decline to the 50-day SMA ($0.47), as demonstrated by the long tail on the day’s candlestick. The 20-day EMA is a significant level for the bulls since, if they can keep the price above it, the XRP/USDT pair could possibly climb back up to close to $0.56.
If the price drops and goes beneath the 20-day EMA, it implies that sellers are being drawn to the higher levels. The pair could then go down to the 50-day SMA. If it breaks and finishes below this point, it might signal the start of a steeper decline to $0.41.
The 4-hour chart indicates that the rebound is being met with selling close to the 20-EMA, indicating that short-term sentiment is still bearish and sellers are taking advantage of rallies. If the price falls from its current position, bears may attempt to push the pair below $0.47. In the event of success, the pair could potentially drop to $0.44.
If buyers push the price above the moving averages, it could open the way for a potential rally up to $0.55.
The US will eventually reach a satisfactory outcome with regards to cryptocurrency, according to Coinbase CEO.
Lido DAO price analysis
LDO has been declining within a descending channel for the past few days, suggesting that the bearish sentiment is prevailing.
The LDO/USDT pair experienced a sharp decline on June 10, however the long tail on the day’s candlestick indicates that bulls are energetically purchasing the dips to the support at $1.57. Buyers will attempt to initiate a rebound that could take it up to the moving averages.
The sellers, however, are likely to have different intentions. They will not be willing to compromise with the buyers, and will attempt to push the price down to $1.57. If this level is breached, the pair could start to drop to the support line of the channel close to $1.
The RSI being deeply oversold indicates that a rebound in the market may be imminent. Buyers attempted to initiate a rebound, however, the bears prevented the price from surpassing $1.90. Consequently, this is a critical barrier that buyers must overcome to initiate a recovery.
The two could ascend to the 20-EMA where the bulls are likely to meet strong resistance from the bears. Buyers must overcome this impediment to initiate a more robust rally. This optimistic outlook will be nullified in the short term if the cost drops below $1.65.
Render Token price analysis
On June 10, Render Token (RNDR) experienced a sharp decline, dropping below the uptrend line. However, the bulls are attempting to push the price back up above the breakdown level, providing a small glimmer of hope.
If the price remains above the upward trend line, it could indicate that the recent drop may have been a false signal. The RNDR/USDT pair could then rise towards the 20-day EMA ($2.31) where it will likely face a true evaluation.
If the cost does not remain above the uptrend line, this will indicate that the bears have converted the uptrend line into a barrier. The pair may then continue to drop and reach the next support level close to $1.60.
The 4-hour chart illustrates that bulls are attempting to raise the price above the breakdown level, yet the bears have resisted. The area between the uptrend line and the 20-EMA is the key area to monitor. If the cost surpasses this region, the pair could ascend to $2.40.
If the price continues to fall from its current level and drops below $1.80, it will indicate the continuation of the downtrend. The pair could then dip to $1.60, where buyers are likely to put up a strong resistance.
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