Altcoin prices crumbled after the United States Securities and Exchange Commission (SEC) announced lawsuits against Binance and Coinbase at the start
Altcoin prices crumbled after the United States Securities and Exchange Commission (SEC) announced lawsuits against Binance and Coinbase at the start of the week. Apart from the action against the two biggest crypto exchanges, investors seem to be nervous because the SEC labeled 23 cryptocurrencies as securities in the two lawsuits. That brings the total number of cryptocurrencies termed as securities by the SEC to 67.
Among the mayhem, a minor positive is that Bitcoin (BTC) and Ether (ETH) have held out relatively well. This suggests that institutional investors are not panicking and dumping their positions. Due to their outperformance, Bitcoin’s dominance has risen to a year-to-date high of 47.6% and Ether’s to 20%.
The uncertainty in the near term is likely to keep several investors on the sidelines. During this period, the cryptocurrencies that have held out generally tend to do well when the market sentiment improves.
Let’s look at the top-5 cryptocurrencies that are trying to sustain above their respective support levels and are attempting to start a rebound. What are the important support and resistance levels to keep an eye on?
Bitcoin price analysis
Bitcoin once again dipped to the crucial support at $25,250 on June 10, indicating that the bears are keeping up the pressure. The repeated retest of a support level within short intervals tends to weaken it.
The downsloping moving averages and the relative strength index (RSI) in the negative territory indicate that bears are in control. If the support zone between $25,250 and $23,896 crumbles, the BTC/USDT pair may witness panic selling. The pair could then plummet to the psychologically vital level of $20,000. Buyers are expected to protect this level with all their might.
If bulls want to prevent a sharp decline, they will have to quickly push the price above the 20-day exponential moving average ($26,721). Such a move will suggest strong demand at lower levels. The pair may first rise to the 50-day simple moving average ($27,464) and thereafter to the resistance line of the channel. Buyers will have to kick the price above this level to indicate the resumption of the up-move.
The 4-hour chart shows that the recovery off the $25,250 support is facing selling at the 20-EMA. This indicates that the bears are not giving any opportunity to the bulls to make a comeback. The bears will have to sink the price below $25,250 to further solidify their position.
On the contrary, if the price turns up and breaks above the 20-EMA, the pair could rally to the 50-SMA. If this level gets taken out, the pair is likely to move toward $27,400.
Ether price analysis
Ether has been in a corrective phase for the past several days. The bears pulled the price below the 50% Fibonacci retracement level of $1,755 on June 10 but the bulls prevented a collapse as they defended the strong support at $1,700.
The bulls will try to start a relief rally that could reach the 20-day EMA ($1,835). This is an important level to watch out for because a break and close above it will suggest that the ETH/USDT pair may stay range-bound between $1,700 and $2,000 for some time.
Contrarily, sellers will try to stall the recovery and tug the price below the $1,700 support. If they can pull it off, the pair may start the next leg of the correction. There is a minor support at $1,600 but if it fails to hold, the pair may collapse to $1,352.
The 4-hour chart shows that the bulls had previously protected the $1,700 level with vigor and they may again try to do that. Buyers will have to cross the obstacles at the moving averages to start a sustained recovery that could take the price to $1,920.
On the contrary, if the price turns down from the current level or the moving averages, the bears will again try to sink the pair below $1,700. If they succeed, the selling may 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 nosedived below the 20-day EMA ($0.50).
However, a positive sign is that the buyers promptly purchased the dip to the 50-day SMA ($0.47) as seen from the long tail on the day’s candlestick. The 20-day EMA is an important level for the bulls because if they sustain the price above it, the XRP/USDT pair may again reach near $0.56.
Instead, if the price turns down and breaks below the 20-day EMA, it will suggest that higher levels are attracting sellers. The pair may then drop to the 50-day SMA. A break and close below this level may start a deeper fall to $0.41.
The 4-hour chart shows that the recovery is facing selling near the 20-EMA. This suggests that the short-term sentiment remains negative and bears are…
cointelegraph.com