Bitcoin shows a surprising decline as the Spot ETF decision approaches. On the contrary, while ETH is rising, altcoins are rising. What are the important support and resistance levels to pay attention to in altcoins such as Bitcoin and XRP Coin? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
cryptokoin.com As you follow from , the US Securities and Exchange Board tweeted on January 9 that spot Bitcoin exchange-traded fund applications were approved. But then the SEC said its social account was hacked and no ETFs were approved. Following the hacked tweet, Bitcoin quickly rose to approximately $48,000. But he later returned his interests. Noting the muted reaction, trading firm QCP Capital predicts that the approval is “mostly priced in and there may not be a big post-approval rally.”
Daily cryptocurrency market performance. Source: Coin360Although this event increases volatility in the short term, the long-term trend may remain intact. Even if there is a sell-off in the markets following the green light for one or more spot Bitcoin ETFs, the downside movement is expected to remain limited as long-term investors may view the declines as a buying opportunity.
BTC, ETH, BNB, SOL and XRP Coin analysis
Bitcoin (BTC) price analysis
Bitcoin closed above the ascending triangle formation on January 8, indicating the start of the next leg of the uptrend. The target of the bullish formation is $49,178.
The bears are trying to sink the price below the $44,700 breakout level and trap the aggressive bulls. If they do this, it is possible that BTC will witness long liquidation. Thus, a drop to the 50-day easy moving average ($42,078) is likely. The sell-off could accelerate below this support and BTC could fall as low as $37,980. Instead, if the price recovers from $44,700, it would indicate that the bulls are trying to turn the level into support. This will increase the possibility of a rise to $49,178 and then to $52,000.
Ethereum (ETH) price analysis
ETH rose sharply from the 50-day SMA ($2,232) on January 9. This showed solid buying at lower levels. The bulls continued their buying on January 10 and pushed the price above the $2,400 overhead resistance.
If buyers hold the price above $2,400, it will indicate that the uptrend has started again. It is possible for ETH to jump to $2,700 and then to the spiritually valuable $3,000 level. This optimistic view will be invalidated in the near term if the price declines and breaks below the 20-day EMA ($2,294). This will suggest a range-dependent movement between $2,100 and $2,400 for a while.
Binance Coin (BNB) price analysis
The bulls managed to keep BNB above the 20-day EMA ($298) on January 8 and 9. But they could not initiate a meaningful recovery. This indicates a lack of demand at higher levels.
The flat 20-day EMA and the RSI just above the midpoint do not give bulls or bears a clear advantage. If the price closes below the 20-day EMA, a drop to the neckline is possible for BNB. The bulls will need to push the price above $310 and sustain it to show that the selling pressure is slowing down. It is possible that BNB may then try to rise to $327 and subsequently to a high of $338.
Solana (SOL) price analysis
Solana bounced back from the uptrend line on January 8. However, the bulls could not overcome the hitch in the downtrend line.
The 20-day EMA ($96) has flattened out and the RSI is near the midpoint. This shows that there is stability between supply and demand. This situation shows that SOL will be stuck between the uptrend and downtrend lines for a while. If the bears sink the price below the uptrend line, an increase in selling is possible. In this case, SOL is likely to drop to $67. Alternatively, if the price rises and breaks above the downtrend line, it will indicate that the bulls are back in the game. SOL is likely to rise to $117 later.
Ripple (XRP Coin) price analysis
XRP Coin has been hovering around the $0.57 level for a while. This points to a fierce battle between XRP Coin bulls and bears.
The 20-day EMA ($0.59) is sloping down. Additionally, the RSI for XRP Coin is below 38. This shows that the bears have the upper hand. If the price falls below $0.54, it is possible that sales will increase. In this case, a drop in the price of XRP Coin to $0.50 is on the table. On the upside, the bulls will need to push the price above the moving averages to show strength. It is possible that the short-term trend will change in favor of buyers after the price breaks above the downtrend line. It is possible for the XRP Coin price to rise to $0.67 and subsequently to $0.74.
ADA, AVAX, DOGE, DOT and MATIC analysis
Cardano (ADA) price analysis
ADA’s sharp bounce from the $0.46 support on January 8 stalled near the 20-day EMA ($0.55). This signaled that the bears were not giving up.
It is possible that the price could slide towards the $0.46 support, which remains a key level to watch out for. Buyers will fiercely protect this level. Because falling below this level may aggravate sales and reduce ADA to $0.37. If the price recovers from $0.46, the bulls will try to break the barrier at the 20-day EMA again. If they are successful, it is possible for ADA to rise to the downtrend line. Here the bulls are expected to compete with the strong resistance of the bears.
Avalanche (AVAX) price analysis
AVAX turned down from the neckline of the head and shoulders formation on January 9. This shows that the bears are trying to defend the level aggressively.
It is possible for AVAX to drop to a critical level of $31. If it breaks the $31 support, your sales will increase. In this case, it is possible for AVAX to reach its $26 formation target. On the contrary, if the price recovers strongly from the $31 level, it will indicate that the bulls are fiercely protecting this level. This will probably keep AVAX between $31 and $38 for a while. A breakout and close above $38 would indicate that the bears may lose control.
Dogecoin (DOGE) price analysis
DOGE’s recovery attempt on January 9 faded near the 20-day EMA ($0.09). This shows that bears are active at higher levels.
The bears will try to further strengthen their position by pulling the price to the next support at $0.07. This level will likely attract buyers. However, if the bulls fail to overcome the bump at the 20-day EMA, the possibility of a drop to $0.06 increases. Contrary to this assumption, if buyers push the price above the 20-day EMA, it would indicate that the selling pressure will ease. DOGE is then likely to rise to the overhead resistance zone of $0.10 to $0.11.
Polkadot (DOT) price analysis
The bears pulled Polkadot below the 50-day SMA ($6.96) on January 8. However, they could not maintain lower levels, as seen from the long tail on the candlestick.
A minor downside is that the bulls failed to maintain the tempo and push the price above the 20-day EMA ($7.58). This shows that the bears are trying to turn the 20-day EMA into resistance. If the price declines below the $6.50 support, DOT will complete a bearish H&S pattern. If the bulls want to prevent a downside move, they will need to push the price above the $7.90 resistance. This will likely open the doors for a rally to $8.80.
Polygon (MATIC) price analysis
MATIC jumped from $0.73 on January 8. However, the recovery is facing selling near the 50-day SMA ($0.85).
The downtrending 20-day EMA ($0.87) and the RSI just below the midpoint indicate a slight advantage for the bears. If the price turns down from the moving averages, it is possible for MATIC to fall back towards the strong support of $0.70. Conversely, if buyers push the price above the moving averages, it will indicate solid demand at lower levels. In this case, MATIC could attempt a genuine rally to the $1 overhead resistance, which would prove to be a formidable obstacle.
