Cryptocurrency markets have been experiencing heightened volatility in the past two days, as they grapple with the repercussions of the United States Securities and Exchange Commission (SEC) taking action against two of the largest crypto exchanges, Binance and Coinbase.
Following the initial shock and subsequent recovery, it is probable that the markets will settle into a range as investors contemplate the uncertainty surrounding the legal proceedings. The initial reaction has been encouraging, as the markets have not plummeted, which illustrates the increasing sophistication of the cryptocurrency sector.
Glassnode data reveals that from June 5th to 6th, 12,600 Bitcoin (BTC) were withdrawn from exchanges, suggesting that traders maintained their composure instead of succumbing to panic, as was the case in November with the FTX episode.
What are the key support levels that should be monitored for potential downside? Will lower prices draw in buyers? Let’s analyze the graphs of the top 10 digital currencies to discover the answer.
Bitcoin price analysis
Bitcoin rebounded from the essential support at $25,250 on June 6, showing that the bulls are attempting to fiercely protect the level. Nevertheless, the comeback is encountering selling near the moving averages.
The bears will make another attempt to push the price down to $25,250. This is an important level to watch since a break and close below it could lead to a possible drop to $20,000. Such a sharp decline may postpone the start of the following upward move.
The bulls are anticipated to be assertive in buying at the area between $25,250 and the support line of the channel. To indicate the end of the corrective phase, buyers will need to push the price higher than the resistance line of the channel. The BTC/USDT pair could then potentially surge to $31,000.
Ether price analysis
Ether (ETH) dropped beneath the resistance line of the descending wedge pattern on June 5th, yet the bears were unable to capitalize on the momentum. This indicates that there is demand at lower prices.
On June 6, the bulls drove the price upwards above the moving averages, however they were met with considerable selling pressure from the bears. The sellers will attempt to once more push the price down into the wedge. If they are successful, the ETH/USDT pair could drop to the support line of the wedge.
If the price rises off the resistance line of the wedge, it will indicate that the bulls have reversed the line to a support level. For the price to move up to $2,000 and then to $2,200, buyers need to push it above $1,928.
BNB price analysis
On June 5, BNB (BNB) experienced a sharp decline, causing the price to drop below the formidable support level of $280. On June 6, there was a feeble effort to initiate a rebound, however the bears did not permit the price to remain above $280.
The trading resumed on June 7, and the bears have caused the price to go below the significant support at $265. This is an unfavorable indication, as it implies the beginning of a new decline to $240 and then to the critical support at $220.
If bulls are hoping for a resurgence, they must bring the price back up to the $265 breakdown point. If they can achieve this, the BNB/USDT pair may return to $280 and, eventually, to the 20-day exponential moving average (EMA) of $299.
XRP price analysis
On June 5 and 6, traders demonstrated their usual behavior in XRP (XRP) by purchasing the dip to the 20-day EMA ($0.49), as evidenced by the long tails on the candlesticks.
The bears, however, are not willing to surrender without a fight. They are selling at the resistance zone between $0.56 and $0.59 whenever the price rises. If the price decreases drastically and goes beneath the 20-day EMA, it would indicate that the bears are attempting to maintain the range between $0.30 and $0.56.
Buyers, meanwhile, may have other intentions. If they manage to surpass the overhead obstacle, it could be seen as the beginning of a fresh uptrend. The XRP/USDT pair could increase to $0.60 and then to $0.80.
Cardano price analysis
Cardano (ADA) dropped beneath the uptrend line of the ascending triangle pattern on June 5, rendering the bullish arrangement invalid.
The bulls bought the dip on June 5, but they were unable to push the price back within the channel. This implies that the bears are attempting to transform the uptrend line into a resistance. The selling persisted on June 7, and the bears pulled the price below $0.33. The ADA/USDT pair may decline to the solid support at $0.30.
On the positive side, an indication of strength will be a close within the channel. This would indicate that the dip below the channel might have been a false signal of a bearish trend. Buying could be robust if the pair rises above $0.39.
Dogecoin price analysis
Dogecoin (DOGE) dropped below the $0.07 support level on June 5, but quickly bounced back up from the nearby $0.06 support.
The bulls attempted to push the cost beyond the 20-day EMA ($0.07) on June 6, yet the bears sold the upturn. This implies that the bears have not abandoned and they still sell near strong opposition. The descending moving averages and the relative strength index in the negative domain show that the bears have the advantage. The bears will endeavor to drive the price beneath $0.06.
If bulls are aiming for a revival, they must elevate the cost above the 20-day exponential moving average. The DOGE/USDT pair could then try to surge up to $0.08.
Polygon price analysis
On June 6, Polygon (MATIC) dropped below the $0.82 support level, yet the bulls rapidly took advantage of the decline as evidenced by the long tail on the day’s candlestick.
Buyers attempted to keep the price above the breakdown point of $0.82, yet the bears had different ideas. They sold heavily on June 7, causing the price to dip beneath the June 6 low of $0.79, suggesting the downtrend would continue. The MATIC/USDT pair could next fall to the strong support at $0.69.
If bears want to stop the drop, they have to rapidly move the cost upward above $0.82. This could ensnare the bold bears, leading to a short squeeze, which could result in the price going back to $0.94.
On the same day the SEC served a lawsuit, ARK Invest purchased shares of Coinbase.
Solana price analysis
Solana (SOL) bounced back from the solid support at $18.70 on June 5 and 6, as indicated by the long tail on the day’s candlesticks; however, the bulls were unable to surpass the 20-day EMA ($20.50).
This suggests that the bears are still active at higher levels. If the price slides further and breaches the $18.70 support, the SOL/USDT pair could initiate a downward move towards the subsequent support at $15.28.
If the price bounces back from the current level of $15.28, it will signify that there is demand at these lower prices. The bulls will then attempt to push the price above $22.30. If successful, the pair may ascend to $24 and later try to surge to $27.12.
Polkadot price analysis
Polkadot (DOT) dropped below the key support of $5.15 on June 5, but recovered quickly on June 6, surpassing the breakdown level.
On June 7, the bulls were unsuccessful in sustaining the recovery, as the bears sold off the small upturn. Sellers will attempt to reinforce their control by driving the price beneath $4.90. If they succeed in doing so, the DOT/USDT pair may plummet to $4.22.
The positive side of things is that the first major resistance to be aware of is the 20-day EMA ($5.29). If the price goes above this point, it will be a sign that the selling pressure may be easing. A move beyond $5.56 could give the pair an extra boost.
Litecoin price analysis
On June 5, Litecoin (LTC) saw its price dip below the moving averages, but it quickly recovered the next day. However, the bulls were unable to keep the price above the 20-day EMA ($90), indicating that the bears are selling on rallies.
The bears may attempt to push the price to the uptrend line. It is essential for the bulls to protect this level since a break and close below it could indicate the beginning of a potential decline. The LTC/USDT pair could initially drop to $75 and then to $65.
If the price rises from its current level or the uptrend line, it could indicate that the pair may remain within the triangle for a while longer. To initiate the next upswing, the bulls will have to push the price above the triangle.
Subscribe to our email newsletter to get the latest posts delivered right to your email.
Comments