Altcoin prices collapsed after the US Securities and Exchange Commission (SEC) announced lawsuits against Binance and Coinbase earlier in the week.. Aside from the action against the two largest cryptocurrency exchanges, investors appear to be nervous that the SEC listed 23 cryptocurrencies as securities in the two lawsuits. This brings the total number of cryptocurrencies qualified as securities by the SEC to 67.
In the midst of the chaos, one small silver lining is that the price of bitcoin (BTC) and the price of Ether (ETH) have held up relatively well. This suggests that institutional investors are not panicking and dumping their positions. Due to its superior performance, the domain Bitcoin has risen to a year-to-date high of 47.6% and Ether’s to 20%.
Near-term uncertainty is likely to keep a number of investors on the sidelines. During periods like these, cryptocurrencies that have held up generally tend to do well when market sentiment improves..
Let’s take a look at the top 5 cryptocurrencies that are trying to stay above their respective support levels and trying to start a rally. What are the important support and resistance levels to watch out for?
bitcoin price analysis
The bitcoin price fell back to the crucial support of $25,250 on June 10, indicating that the bears are keeping up the pressure. Repeatedly testing a support level on short intervals tends to weaken it.
The falling moving averages and the RSI in negative territory indicate that the bears are in control. If the support zone between $25,250 and $23,896 falls, the BTC/USDT pair could see panic selling. The pair could drop to the psychological level of $20,000. Buyers are expected to protect this level with all their might.
If the bulls want to avoid a sharp decline, they will need to quickly push the price above the 20-day exponential moving average ($26,721).. This move will suggest strong demand at lower levels. The pair could first rally to the 50-day SMA ($27,464) and then to the resistance line of the channel. Buyers will have to push the price above this level to signal a resumption of the bullish move.
The 4-hour chart shows that the recovery from the $25,250 support faces a sell-off at the 20-EMA.. This indicates that the bears are not giving the bulls any chance to rally. The bears will have to push the price below $25,250 to further consolidate their position.
On the contrary, if the pair rises above the 20-EMA, the pair could rally towards the 50-SMA. If this level is broken, the pair could move towards $27,400.
Ether Price Analysis
Ether has been in a corrective phase for the past few days. The bears pushed the price below the $1,755 50% Fibonacci retracement level on June 10, but the bulls prevented a collapseas they defended the important support at $1,700.
The bulls will try to initiate a relief rally that could reach towards the 20-day EMA ($1,835). This is an important level to consider because A breakout and close above it will suggest that the ETH/USDT pair may remain range bound between $1,700 and $2,000 for some time..
On the contrary, sellers will try to stop the rally and push the price below the $1,700 support. If they succeed, the pair could start the next leg of the correction. There is minor support at $1,600, but if it doesn’t hold, the pair could plunge as far as $1,352.
The 4-hour chart shows that the bulls had previously protected the $1,700 level vigorously and may try again. Buyers will have to cross the moving average hurdles to initiate a sustained rally that could take the price as high as $1,920..
On the contrary, if the price turns down from the current level or the moving averages, the bears will try again to push the pair below $1,700. If they do, the selling could accelerate and the pair could retest $1,352.
XRP Price Analysis
XRP (XRP) turned down from the overhead resistance near $0.56 on June 10 and fell below the 20-day EMA ($0.50)..
However, a positive sign is that buyers quickly took advantage of the dip to the 50-day SMA ($0.47). as seen in the long tail of the day candle. The 20-day EMA is an important level for bulls because if they hold the price above it, the XRP/USDT pair can go back down to near $0.56..
Instead, If the price turns lower and breaks below the 20 day EMA, it will suggest that the higher levels are attracting sellers.. The pair can then drop to the 50-day SMA. A break and close below this level can initiate a deeper drop to $0.41.
The 4-hour chart shows that the rally is facing selling near the 20-EMA. This suggests that short-term sentiment remains negative and bears are selling rallies. If the price turns down from the current level, the bears will try to push the pair below $0.47. If they do, the pair could drop as low as $0.44.
On the other hand, if the buyers push the price above the moving averages, it will clear the way for a possible rally to $0.55.
Lido DAO Price Analysis
Lido DAO (LDO) has been falling inside a descending channel pattern for the past few days, indicating that the bears are in control.
The LDO/USDT pair fell sharply on June 10, but the long tail of the day’s candlestick shows that The bulls are buying aggressively on dips to the $1.57 support.. The buyers will try to initiate a rally that could reach the moving averages.
However, the sellers likely have other plans.. They will not want to give buyers a margin and they will try to bring the price down to USD 1.57. If this level is broken, the pair could start its decline towards the support line of the channel near $1..
Oversold levels on the RSI suggest a relief rally may be just around the corner. The buyers tried to initiate a rally, but the bears did not allow the price to rise above $1.90. Therefore, this becomes a major hurdle to cross for buyers to initiate a recovery.
The pair could reach the 20-EMA, where bulls will be met with significant selling by bears.. Buyers will need to overcome this hurdle to initiate a stronger rally. This positive view will be invalidated in the short term if the price falls below $1.65.
Render Token Price Analysis
Render Token (RNDR) corrected sharply on June 10 and broke below the uptrend line, but one small silver lining is that the bulls are trying to push the price back above the breakout level.
If the price sustains above the uptrend line, it will suggest that the recent breakout may have been a bear trap. The RNDR/USDT pair could then rally towards the 20-day EMA ($2.31), where it is likely to face its true test..
On the other hand, if the price fails to hold above the uptrend line, this will suggest that the bears have turned the uptrend line into resistance. Then the pair could extend its decline and fall to the next support near $1.60.
On the 4-hour chart, the bulls are trying to breakout, but the bears are holding their ground. The zone between the uptrend line and the 20-EMA remains the key level to watch. If the price breaks above this zone, the pair could recapture $2.40..
On the contrary, if the pair continues to decline from the current level and breaks below $1.80, this will signal a resumption of the downtrend. The pair could drop as low as $1.60, where the buyers would fight back hard.
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