Altcoin prices plummeted after the U.S. Securities and Exchange Commission (SEC) announced a lawsuit against Binance and Coinbase earlier in the week. Investors seem nervous after the SEC labeled 23 cryptocurrencies as securities in two separate lawsuits against two major crypto exchanges. This brings the total number of cryptocurrencies that the SEC calls securities to 67.
Bitcoin (BTC) and Ethereum (ETH) are holding up relatively well in this turmoil, which is a bit of a plus. This suggests that institutional investors are not panicking and letting go of their positions. Due to Bitcoin’s outperformance, control rose to a year-to-date high of 47.6%, while Ether climbed to 20%.
Short-term uncertainty is likely to leave some investors on the sidelines. During this period, cryptocurrencies that have held up generally tend to perform well as market sentiment improves.
Let’s take a look at the top 5 cryptocurrencies that are trying to hold above their respective support levels and start rebounding. What are the key support and resistance levels to watch out for?
Bitcoin price analysis
Bitcoin fell again to the critical support of $25,250 on June 10, indicating that the bears are maintaining the pressure. Retesting the support level repeatedly at short intervals tends to weaken the support level.
The downslope of the moving averages and the negative territory of the Relative Strength Index (RSI) show that the bears are in control. The BTC/USDT pair could face panic selling if the support zone between $25,250 and $23,896 breaks. After that, a plunge to the psychologically important levels of $20,000 is possible. Buyers are expected to do their best to adhere to this level.
The price needs to push the price above the 20-day exponential moving average ($26,721) faster if the bulls want to prevent a sharp decline. Such a move would suggest strong demand at lower levels. The pair can rise first to the 50-day simple moving average ($27,464) and then to the channel’s resistance line. Buyers will need to push the price above this level to signal a resumption of the rally.
The 4-hour chart shows that the recovery from the $25,250 support faces selling at the 20-EMA. This shows that the bears are not giving the bulls any chance of a reversal. The bears will need to sink the price below $25,250 to further consolidate their position.
Conversely, if the price rises and breaks above the 20-EMA, the pair can move up to the 50-SMA. A breakout of this level will likely move the pair towards $27,400.
ether price analysis
Ether has been in a correction phase for the past few days. The bears pushed the price below the 50% Fibonacci retracement level of $1,755 on June 10, but the bulls defended the strong support at $1,700 and prevented a crash.
The bulls will try to start a rescue rally that could reach the 20-day EMA ($1,835). This is an important level to watch as a breakout and close would suggest that the ETH/USDT pair could stay within the $1,700-$2,000 range for some time.
Conversely, sellers will try to delay the recovery and push the price below the $1,700 support. If they can pull it off, the pair could start the next corrected leg. There is a small support at $1,600, but if it fails to hold it, the pair could collapse to $1,352.
The 4-hour chart shows that the bulls have defended the $1,700 levels vigorously so far and may attempt it again. Buyers need to overcome the moving average obstacles to initiate a sustained recovery that could push the price to $1,920.
Conversely, if the price falls below the current levels or moving averages, the bears will try to sink the pair below $1,700 again. A success could accelerate the selling and retest $1,352.
XRP price analysis
XRP (XRP) fell from overhead resistance near $0.56 on June 10 and plunged below the 20-day EMA ($0.50).
However, it is a positive sign that buyers immediately bought dips to the 50-day SMA ($0.47), as evidenced by the long tail of the candlesticks on the day. The 20-day EMA is a key level for the bulls and if they sustain above it, the XRP/USDT pair could reach close to $0.56 again.
Rather, if the price turns down and breaks below the 20-day EMA, it suggests that higher levels are attracting sellers. The pair can then drop to the 50-day SMA. A break below this level could start a further decline to $0.41.
The 4-hour chart shows that the recovery faces selling near the 20-EMA. This suggests that short-term sentiment remains negative and the bears are selling on the upside. If the price turns down from the current levels, the bears will try to sink the pair below $0.47. If that happens, the pair can drop to $0.44.
On the other hand, if buyers push the price above the moving averages, it will pave the way for a possible rally to $0.55.
Related: US Will Finally Find The “Right Outcome” For Cryptocurrencies — Coinbase CEO
Lido DAO Price Analysis
The Lido DAO (LDO) has been confined within a descending channel pattern for the past few days, which shows that the bears have the upper hand.
The LDO/USDT pair plunged on June 10, but the long tail of the candlesticks that day suggests that the bulls are aggressively buying dips to the $1.57 support. Buyers will try to initiate a recovery that could reach the moving averages.
However, the seller may have other plans. They don’t want to give buyers freedom and will try to push the price down to $1.57. If this level breaks, the pair may start to descend to the channel’s support line near $1.
A very oversold level in the RSI suggests that a rescue rally may be imminent. Buyers tried to start a recovery, but the bears did not allow the price to rise above $1.90. As such, this becomes a significant hurdle that buyers must overcome to initiate recovery.
The pair can then move up to the 20-EMA, where the bulls are likely to encounter strong selling by the bears. Buyers need to overcome this obstacle to start a stronger rally. Our positive view will be invalidated in the short term if the price breaks down below $1.65.
Render Token Price Analysis
Render Token (RNDR) made a significant correction on June 10, breaking below the uptrend line, but the bulls’ attempt to push the price back above the breakdown level is a small plus.
If the price sustains above the uptrend line, it suggests that the recent decline may have been a bear trap. After that, the RNDR/USDT pair can move up towards the 20-day EMA ($2.31), where it will likely face a real test.
Alternatively, if the price fails to sustain above the uptrend line, it would suggest that the bears have reversed the uptrend line to resistance. After that, the pair can extend the decline and drop to the next support near $1.60.
The 4-hour chart shows that the bulls are trying to push the price back above the breakdown level, but the bears are holding off. The zone between the uptrend line and the 20-EMA remains the key level to watch. If the price breaks out of this zone, the pair can rally to $2.40.
Conversely, if the price continues to drop from the current levels and breaks below $1.80, it will signal a resumption of the downtrend. After that, the pair could fall to $1.60, which could prompt buyers to take strong defenses.
This article does not contain investment advice or recommendations. Any investment or trading move involves risk and readers should conduct their own research before making any decision.
This article is for general informational purposes and is not intended, nor should it be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views or opinions of Cointelegraph.
