Bitcoin is still trading under $27,000, and the current downturn of the past few days has led analysts to predict a drop to the $20,000 range. Though anything is possible, bulls are unlikely to relinquish the $25,000 support without a struggle.
Glassnode’s lead on-chain analyst Checkmate commented on May 24th that the sell-side risk ratio metric implies that “sellers are out of steam on both sides,” signifying that significant changes are imminent. The last time the sell-side risk ratio was this low was in late 2015, which initiated the bull run that culminated with Bitcoin reaching $20,000 in December 2017.
It was reported on May 26th that a debt ceiling agreement is likely to be reached, which had a positive effect on the stock market. If this risk-positive sentiment persists, it could lead to an increased demand for Bitcoin (BTC) and certain altcoins.
Let’s analyze the graphs of the top 10 digital assets to determine the essential levels of resistance that must be surpassed in order to initiate a lasting recovery in Bitcoin and the major altcoins.
Bitcoin price analysis
Bitcoin rebounded from $25,871 on May 25, near the formidable support zone between $25,811 and $25,250. The bulls will endeavour to drive the price to the 20-day exponential moving average of $27,173.
If the price drops from the 20-day EMA, it could be an indication that bears are selling on any upticks, and this could lead to further strong selling by them.
The key level to observe to the downside is $25,250. The bulls are anticipated to protect this support with all their strength since if this level fails, the BTC/USDT pair could plummet to $24,000 and eventually to $20,000.
If the bulls manage to break through the resistance at the 20-day Exponential Moving Average, the pair could potentially rise to the resistance line. For buyers to indicate that the correction may be complete, they will need to surpass this obstacle.
Ether price analysis
Ether (ETH) has been in a downward sloping wedge pattern over the last few days. On May 25, the bears attempted to push the cost down to the wedge’s support line, yet the bulls bought up the dip strongly, as demonstrated by the long wick on the candle.
The bulls are attempting to push and maintain the price above the 20-day EMA ($1,829). Should they be successful, the ETH/USDT pair could climb to the resistance line. This is a critical point to monitor since a break above it could cause a surge to $2,000.
If the price drops from its current level or the resistance line, it could be an indication that bears remain in control at higher levels. This could result in the pair being confined to the wedge for a few more days.
BNB price analysis
BNB (BNB) dropped close to the $300 level of horizontal support on May 26, however the long wick on the candlestick indicates that the bulls were buying.
The 20-day EMA of $311 is the most important resistance level to keep an eye on if the price rises. If the price reverses from this level, it is likely that it will go below $300. If this barrier is broken, the BNB/USDT pair could fall to the support line of the descending channel pattern.
If the price instead rises and surpasses the 20-day EMA, it would indicate that there is strong demand at lower prices. The pair may then try to climb to the resistance line. Buyers must overcome this barrier in order to indicate that the rally to $350 is beginning.
XRP price analysis
The bears managed to push XRP (XRP) below the 20-day EMA ($0.45) on May 24th and 25th, however, they were unable to keep it at that level. This indicates that the sentiment has shifted to a more optimistic one and investors are taking advantage of the dips to the 20-day EMA.
The price is still caught between the moving averages, showing that the bulls and bears are uncertain. If it breaks and closes above the 50-day SMA of $0.47, the bulls will gain the upper hand. This could then cause the XRP/USDT pair to go up to $0.54 and then $0.58.
If the price falls and remains below the 20-day EMA, it will demonstrate that bears have taken control. This could cause the pair to plunge to the critical support level of $0.40.
Cardano price analysis
Cardano (ADA) is currently in a battle between the bulls and the bears near the uptrend line. The bears are attempting to push the price down below the uptrend line, while the bulls are strongly defending it.
The 20-day EMA declining and the relative strength index close to 42 suggest that bears are in control. For the price to begin its next descent to $0.30, it must dip below $0.35.
If bulls are looking to take charge, they must push and keep the ADA/USDT pair beyond the moving averages. This will give them the opportunity to rally up to the resistance at $0.44, where the bears may put up a strong fight.
Dogecoin price analysis
The bears drove Dogecoin (DOGE) beneath the $0.07 support on May 25, yet the extended tail on the candlestick reveals that the bulls are attempting to safeguard the level.
The bulls must sustain their buying activity and push the price above the 20-day EMA ($0.07) to avert another attack by the bears. There is an additional obstacle at $0.08, but if that is surmounted, the DOGE/USDT pair may begin its march towards $0.10.
If the cost declines from its present level or the 20-day EMA, it would suggest that bears are selling on each small increase. This would raise the probability of a plunge beneath $0.07, and the pair could possibly plunge to $0.06.
Polygon price analysis
On May 25, Polygon (MATIC) declined from the 20-day EMA ($0.89), but the bears were unable to keep the price at the lower levels. On the following day, May 26, strong buying by the bulls drove the price back above the 20-day EMA.
Buyers attempted to keep the rally going beyond the 50-day Simple Moving Average ($0.98), however the long wick on the day’s candlestick indicates that bears are present at higher levels. If buyers can convert the 20-day Exponential Moving Average into support, the MATIC/USDT pair may attempt to reach the downtrend line once more.
If the price falls and goes below the 20-day EMA, it implies that supply is greater than demand. This could lead to the pair declining to the important support at $0.82. If this support is breached, a fall to $0.69 is possible.
Bitcoin has arrived at a “turning point” – four BTC price metrics to observe.
Solana price analysis
The bulls were able to safeguard the $18.70 support on May 24th and 25th, yet they were unable to initiate a robust recovery rally in Solana (SOL). This implies a lack of interest at the higher prices.
Time is quickly running out for the bulls. If they do not begin to rebound soon, the bears will attempt to further their dominance by pushing the price under the $18.70 support. If successful, the SOL/USDT pair could start its descent to $16.
The initial indication of strength will be a break and close above the downtrend line. If this occurs, the pair might then climb to the 50-day SMA ($21.65). If this threshold is surpassed, it will indicate the commencement of an uptrend towards $27.12.
Polkadot price analysis
Polkadot’s (DOT) minimal increase in price from the strong support at $5.15 on May 25 and 26 indicates that the bulls are not pushing for a stronger rise. The bears will attempt to capitalize on this and strengthen their position.
If the price falls below $5.15, the DOT/USDT pair could gain momentum and drop towards the following main support at $4.22.
If bulls want to avoid a decrease, they will need to rapidly raise the cost above the 20-day EMA ($5.40). If they manage to do this, it will imply that the purchasers are attempting to form a higher bottom at $5.15.
The pair could first increase up to the 50-day Simple Moving Average ($5.82) and then move quickly towards the downtrend line. If it surpasses this level, it could indicate that the corrective phase might be finished.
Litecoin price analysis
Litecoin (LTC) has been fluctuating between $96 and $75 over the past few days, exhibiting unpredictable and volatile movements.
On May 25, the bulls began a recovery which has now reached the moving averages. If the price dips from its current level, the next possible destination could be the uptrend line. If the price rises from the uptrend line, it could indicate that the LTC/USDT pair is attempting to form a symmetrical triangle pattern.
If the cost surpasses the moving averages, it will indicate that the short-term sentiment is transitioning to a positive outlook. Afterwards, the pair could attempt to ascend to $96, where the bears may once again strongly oppose it.
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