Most of the major altcoins, including Bitcoin and XRP, are reeling under heavy selling. Moreover, the charts show that the sales in the market are not yet completed. Will Bitcoin continue to drop, dragging the rest of the cryptocurrency market with it? What are the important support levels to consider? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
A narrow gap is usually resolved by a gap break. That’s what happened with Bitcoin on August 17. cryptocoin.com As you’ve followed, Bitcoin has experienced a sharp decline. It’s hard to pinpoint a specific reason for the sales. However, analysts believe that confusion stemming from SpaceX’s claim that $373 million in Bitcoin assets were written off could be one of the potential triggers.
Daily cryptocurrency market performance. Source: Coin360Whatever the reason, the decline has begun. The next big question plaguing investors is how low Bitcoin can go. Many analysts entered the bearish trend. Also, analysts expect Bitcoin to continue its downtrend in the near term.
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC) price analysis
Bitcoin’s narrow gap was resolved to the downside on August 17. This triggered the long liquidation that drove the price to $25,166. The bulls are expected to fiercely defend the $24,800 level. The oversold level in the relative strength index (RSI) suggests that BTC could witness a pullback or consolidation in the near term.
If the price recovers strongly from $24,800, it could reach the 20-day exponential moving average (EMA) of $28,786. This is an important level to consider. If the price turns down from the 20-day EMA, it will indicate that the bears are selling on the rallies. It is also possible that this will increase the probability of a drop below $24,800. In such a case, BTC is likely to decline to $20,000. The first sign of strength would be a break and close above the 20-day EMA. This will signal a possible consolidation in the near term.
Ethereum (ETH) price analysis
Ether declined on August 16, breaking below the immediate support of $1,816. This showed that the bears were in control. Sales momentum increased on August 17. Thus, ETH dropped below the critical support at $1,626. Buyers bought the drop. But they are struggling to build on the recovery. This indicates a lack of demand at higher levels.
The sharp decline sent the RSI into the oversold territory. This shows that the selling has gone overboard in the near term. It is possible for ETH to witness a consolidation or a short-term recovery in the next few days. This is also likely to cause ETH to get stuck in the wide range between $1,626 and $2,000. This view will be invalidated if the price declines and slides below the $1,550 support. It is also possible that this could open the doors for a possible drop to $1,368.39.
Binance Coin (BNB) price analysis
BNB broke the symmetrical triangle pattern on August 16 and closed below it. This shows that the bears are overtaking the bulls.
Selling accelerated on August 17 and BNB dropped below the decisive support at $220. If the bulls fail to push the price above $220, the bears will attempt to lower BNB to the $196 formation target and then $183. Instead, a rebound to the 20-day EMA ($236) is possible if buyers push the price above $220. A break above this level will indicate that a break below $220 could be a bear trap. This is also likely to keep BNB in the $220 to $265 range for a while.
Ripple (XRP) price analysis
XRP price dropped below the $0.56 breakout level on August 17. Thus, it showed that the selling pressure of the bears continues.
The XRP drop has completed the 100% retracement of the entire rally that took place on July 13. However, it is a minor positive point for the bulls to buy the dip near the strong support zone of $0.45 to $0.41. A recovery is likely to hit a roadblock at $0.56 and again at the 20-day EMA ($0.61). If XRP price turns down from this general zone, it will indicate that the bears are selling in rallies. It is also possible that this puts XRP price at risk of breaking the $0.41 support.
Cardano (ADA) price analysis
Cardano fell below the descending channel formation on August 17. This indicates that sales are accelerating.
The bulls successfully defended the important support at $0.24. This points to strong buying at lower levels. Buyers will try to push the price back into the channel. If they succeed, ADA will attempt to rise to the resistance line of the channel. The ascension will probably not be easy. Because the bulls are likely to face selling at the 20-day EMA ($0.28). If the price turns down from this level, it is possible for ADA to retest the strong support at $0.24. A break below this level will signal the resumption of the downtrend.
SOL, DOGE, DOT, MATIC and LTC analysis
Solana (SOL) price analysis
Solana broke below the moving averages on August 16 and the horizontal support at $22.30 on August 17. This indicates that the price will oscillate in the wide range between $14 and $27.12 for a while.
The bulls are trying to start a recovery that is likely to face resistance in the moving averages. If the price turns down from the 20-day EMA ($23.53), the probability of a drop to $18 and eventually to $14 increases. Conversely, if buyers push the price above the moving averages, a break below $22.30 will indicate a bear trap. It is also possible that this will push the SOL towards the $26 to $27.12 overhead zone.
Dogecoin (DOGE) price analysis
Dogecoin broke below the support line of the ascending channel formation on August 15. This may have hit the stops on the long positions and attracted sales by the bears.
DOGE closed below the $0.07 breakout level on August 16. Thus, he signaled that the bears were sitting in the driver’s seat. Sales continued on 17 August. The bears dragged the price below the $0.06 key support. A minor saving grace for the bulls was strong buying at the lower levels. The price climbed back above $0.06. Now the bulls will try to push the price towards the overhead resistance of $0.07. Sellers are likely to have other plans. They will try to push and sustain the price below $0.06. If they do, a drop towards $0.05 is possible for DOGE.
Polkadot (DOT) price analysis
Narrow gap trading on Polkadot expanded to the downside on August 15. This started a decline that almost reached the critical support of $4.22 on August 17.
The bulls will try to fiercely defend the $4.22 support. However, the recovery is likely to face strong selling at the 20-day EMA ($4.91). If the price turns down from this level, the bears are likely to attack the $4.22 support once again. If it breaks this level, it is possible for the DOT to start the next leg of the downtrend. Alternatively, if the price drops from the 20-day EMA but recovers from $4.22, it will indicate that the DOT could consolidate for a few days. The bulls will gain momentum once the price breaks above the moving averages.
Polygon (MATIC) price analysis
Polygon’s dip below the $0.65 support brought along aggressive selling. This brought the price below the next strong support at $0.60 on August 17.
The bulls bought the dip around $0.50, indicating strong demand at the lower levels. However, buyers are likely to face selling at $0.60 and again at the 20-day EMA ($0.66). If the price turns down from the overhead resistance, MATIC is likely to retest the vital support at $0.50. If it breaks this support, MATIC is likely to drop to $0.45 and then to $0.42. On the upside, the bulls will need to push the price above the moving averages to show that the downtrend may be over.
Litecoin (LTC) price analysis
Litecoin turned bearish after dipping below the $81 support on August 15. The price dropped as low as $56 on August 17. The sharp decline in the last few days sent the RSI into the oversold territory. This indicates that a minor recovery or consolidation is likely in the near term.
The relief rally could face selling in the region between $70, the 50% Fibonacci retracement level, and $74, the 61.8% retracement level. If the price turns down from overhead resistance, it is possible for LTC to form a range for a few days. A break and close below the key $56 level could extend the decline to $50.
