The Federal Reserve’s decision to not hike interest rates in its Sep. 20 meeting, but hinting that rates could remain higher for longer, may have been the trigger for the sell-off seen in the US equities markets and the crypto space. Given that risk assets tend to underperform in a high-interest-rate environment, the S&P 500 and Nasdaq have dropped by more than 2% and 3%, respectively, this week.
Nevertheless, Bitcoin (BTC) has remained flat, while altcoins have been unable to keep their intra-week gains due to the risk-off sentiment. Still, it is encouraging to see that Bitcoin and the major altcoins have largely managed to stay above their key support levels. The battle between the bulls and the bears will be a decisive one in the coming days, and it will be interesting to observe the price action.
To gain a better understanding of the crypto market, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin price analysis
The crypto market has been trading within the boundaries of the 20-day exponential moving average ($26,520) and the 50-day simple moving average ($27,050) for the past few days, suggesting that neither the bulls nor the bears are able to gain an upper hand.
The buyers are attempting to keep the BTC/USDT pair above the 20-day EMA. If they succeed, the crypto market could experience a surge up to the next resistance at $28,143. However, if the crypto drops below the 20-day EMA, it will indicate that the bears are back in control and the crypto could fall to the pivotal support at $24,800.
Ether price analysis
The bears have been able to push Ether (ETH) prices lower from the 20-day EMA ($1,628) on Sep. 20, indicating that the crypto drop continues.
The bears will try to extend the crypto down trend by breaking below the key support at $1,530. If successful, the ETH/USDT pair could fall to the next major support at $1,368.
Alternatively, if the crypto charts show a rebound off $1,530 or a rise from the current levels, it could suggest that buyers are entering the crypto market. The first sign of strength will be a break and close above $1,670, which would open the door for a potential crypto rally to $1,745.
BNB price analysis
The crypto drop of BNB (BNB) from $220 on Sep. 18 and breaking below the 20-day EMA ($214) on Sep. 20 indicates that the price may consolidate between $203 and $220 for a while longer.
If the current of the BNB/USDT pair remains below the 20-day EMA, the bears will make one more attempt to pull it below the crucial support at $203. If they succeed, it will indicate the resumption of the downtrend. The next support on the downside is at $183.
On the upside, the bulls will have to clear the hurdle at the 50-day SMA ($222) to signal a comeback. The pair could first rally to $235 and subsequently attempt an up-move to $250, which is likely to attract sellers who want to buy the rumor and sell the news.
XRP price analysis
XRP (XRP) rose above the 20-day EMA ($0.51) on Sep. 19 but the bulls are currently struggling to sustain the crypto recovery.
The current price has dropped back to the 20-day EMA, which is a key support level to watch. If the crypto turns up from the current level, it will suggest a shift in sentiment from selling on rallies to buying on dips. The bulls will then attempt to push the price above the overhead zone between the 50-day SMA ($0.53) and $0.56.
On the other hand, if the 20-day EMA gives way, the pair could fall to the uptrend line. This is an important level for the bulls to defend because a break below it will invalidate the bullish pattern.
Cardano price analysis
The crypto charts suggest that Cardano’s (ADA) price action of the past few days has formed a descending triangle pattern, which will be confirmed on a break and close below $0.24.
The bearish trend is further supported by the gradually downsloping moving averages, however, the bullish divergence on the RSI indicates that the bearish momentum may be slowing down. Buyers will need to act quickly to push the price above the downtrend line to prevent a breakdown. If they succeed, the ADA/USDT pair will be well-positioned for a relief rally to $0.30.
If the crypto drops continue lower and breaks below $0.24, it will complete the bearish setup and set the stage for a crypto fall to $0.22 and eventually to the pattern target of $0.19.
Dogecoin price analysis
The crypto drop in Dogecoin (DOGE) price from the 20-day EMA ($0.06) on Sep. 21 showed that bears are attempting to defend the level.
However, the bears are not able to break the strong support at $0.06, indicating that bulls are buying on dips. The DOGE/USDT pair could continue to move between $0.06 and the 20-day EMA.
If bulls manage to push the price above the 20-day EMA, it will signal the start of a sustained crypto current to the 50-day SMA ($0.07) and then to $0.08. On the other hand, if the $0.06 level breaks, the pair may crypto fall to $0.055.
Solana price analysis
On Sep. 18, the bulls attempted to push the price of Solana (SOL) above the 20-day EMA ($19.57) but failed to reach the 50-day SMA ($21.01), indicating that the bears are actively selling at higher levels.
The 20-day EMA is seeing a fierce battle between the bulls and the bears. If the sellers can keep the price below the 20-day EMA, the SOL/USDT pair could drop to $18.50 and then to the next crypto down support at $17.33.
Conversely, if the price holds above the 20-day EMA, it will signal that the bulls have converted the level into support. This could increase the chances of a retest of the overhead resistance zone between the 50-day SMA and $22.30.
Toncoin price analysis
Traders may have been tempted to take profits when Toncoin (TON) failed to rise above $2.59 on Sep. 19 and 20.
The immediate support level to watch is $2.25. If this is breached, the TON/USDT pair could crypto fall to the 20-day EMA ($2.08). Bulls will have to defend this level to keep the positive sentiment alive. A strong rebound from the 20-day EMA could keep the pair crypto stuck inside the large range between $2.07 and $2.59.
Alternatively, the price could crypto snap back from $2.25. If that happens, it would suggest that traders are not waiting for a deeper correction to crypto buy the rumor sell. This could increase the chances of a break above $2.59, pushing the pair up to $2.90.
Polkadot price analysis
The bears are strongly defending the breakdown level of $4.22 in Polkadot (DOT), which means that they are selling into any minor relief rally.
The negative RSI combined with the downward moving averages suggest that the bears are in control. If the price falls below $3.90, it could indicate the beginning of the next downtrend towards $3.58.
The bulls have a slight advantage as the RSI is showing signs of a potential positive divergence. This could indicate that the selling pressure is decreasing. A break and close above the $4.22 level could lead to a possible rally towards the downtrend line.
Polygon price analysis
On Sep. 19, the crypto charts showed that Polygon (MATIC) closed above the 20-day EMA ($0.54), but the bulls failed to maintain the crypto upswing. This indicates that demand is drying up at higher levels.
The bears took control on Sep. 21 and drove the price back below the 20-day EMA. They will attempt to push the pair below the strong support at $0.49. If they succeed, the MATIC/USDT pair could resume its crypto drop. The next support on the downside is $0.45.
On the other hand, if the price rebounds off the $0.50 support with strength, it will suggest that lower levels are attracting buyers. The bulls will have to propel and sustain the price above $0.55 to signal the start of a stronger crypto rally.
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