Ripple

Bitcoin and altcoins followed stocks lower after hawkish statements from the Federal Reserve confirmed that the central bank remains serious about reducing inflation.

Federal Reserve Chairman Jerome Powell warned that the central bank will continue to use the “tools forcefully” to bring down inflation, which is close to its highest level in 40 years. He cautioned that the restrictive policy may remain for some time and warned that it could “bring some pain to households and businesses.”

The United States equities markets reacted negatively to Powell’s comments with the Dow Jones Industrial Average dropping more than 600 points. The cryptocurrency markets also witnessed sharp selling with Bitcoin (BTC) and most altcoins threatening to break below their immediate support levels.

Along with a not-so-supportive macro environment, Bitcoin’s historical data for September also presents a negative picture. According to CoinGlass data, Bitcoin has witnessed an average decline of 6% in September and barring 2015 and 2016, the month has produced negative returns for investors between 2013 and 2021.

Could Bitcoin and major altcoins remain weak in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin’s shallow rebound off the support line of the ascending channel indicated that bulls are cautious at higher levels. The downsloping 20-day exponential moving average (EMA) ($22,249) and the relative strength index (RSI) in the negative territory, indicate that bears have the upper hand.

Strong selling has pulled the price below the ascending channel on Aug. 26. If bears sustain the price below $20,762, the selling could intensify and the BTC/USDT pair could drop to $18,900. This level may again act as a strong support but if it breaks, the decline could extend to the June 18 intraday low at $17,622.

This negative view will be invalidated in the near term if the price turns up from the current level and breaks above the 50-day simple moving average (SMA) ($22,414). Such a move will indicate that lower levels continue to attract buyers. The pair could then attempt a rally to the resistance line of the channel.

ETH/USDT

Buyers could not push Ether (ETH) above the 20-day EMA ($1,697) on Aug. 25, indicating that bears are defending this level with vigor.

The selling picked up momentum and the bears have pulled the price below the 50-day SMA ($1,588). A close below this support could sink the ETH/USDT pair to $1,500. If the price slips below this crucial support, the pair will complete a bearish head and shoulders pattern. The target objective of this setup is $1,050.

Contrary to this assumption, if the price rebounds off the $1,500 support, the bulls will again attempt to clear the overhead hurdle at $1,700. If they succeed, it will suggest that the pair could rise toward the overhead resistance at $2,000.

BNB/USDT

The bulls pushed BNB above the 20-day EMA ($300) on Aug. 25 but the long wick on the candlestick suggests that bears are selling at higher levels.

The price has turned down on Aug. 26 and the bears are attempting to sink the price below the immediate support at $275. If they succeed, the BNB/USDT pair could complete a bearish head and shoulders pattern. That could result in a decline to $240 and then to the pattern target at $212.

Conversely, if the price turns up and breaks above $308, it could catch the aggressive bears off guard. The pair could then rally to the overhead resistance of $338. If bulls clear this hurdle, the pair will complete a bullish inverse head and shoulders pattern.

XRP/USDT

The bulls pushed Ripple (XRP) above the moving averages on Aug. 26 but the long wick on the candlestick suggests strong selling at higher levels.

The price turned down sharply and the bears are attempting to sink the XRP/USDT pair below the immediate support at $0.33. If they succeed, the next stop could be the critical support at $0.30. A break and close below this level could indicate the resumption of the downtrend.

Alternatively, if the price rebounds off $0.30, it will suggest that bulls continue to buy at this level. That could increase the possibility that the pair may remain stuck between $0.30 and $0.39 for some more time.

ADA/USDT

Cardano’s (ADA) recovery turned down sharply from the 20-day EMA ($0.49) on Aug. 26, suggesting that the higher levels continue to attract strong selling by the bears.

The price could reach the immediate support at $0.43 and if that level also gives way, the next stop could be the crucial level at $0.40. The bulls successfully defended this support on two previous occasions; hence, the level may again attract buying.

If the price rebounds off the current level or $0.40, the bulls will again try to clear the overhead hurdle at the moving averages. If they manage to do that, the ADA/USDT pair could rally to the downtrend line where the bears may mount a strong defense.

SOL/USDT

Solana (SOL) has been gradually declining toward the strong support at $32, which suggests a lack of demand at higher levels.

The 20-day EMA ($38) is sloping down and the RSI is in the negative territory, indicating advantage to bears. If the $32 support collapses, the SOL/USDT pair could drop to the vital support at $26. This is an important level to keep an eye on because a break below it could signal the resumption of the downtrend.

Contrary to this assumption, if the price rebounds off the support at $32, it will suggest that bulls are buying the dips to this level. The buyers will have to push the price above the 50-day SMA ($39) to indicate that the range-bound action between $32 and $48 may continue for a few more days.

DOGE/USDT

Dogecoin (DOGE) marginally rose above the 20-day EMA ($0.07) on Aug. 25 but the bulls could not sustain the higher levels. This suggests that bears are defending the level aggressively.

Strong selling on Aug. 26 pulled the price below the trendline of the ascending triangle pattern. If the price sustains below the triangle, it will invalidate the bullish setup. The DOGE/USDT pair could then decline to $0.06 and later to $0.05.

Alternatively, if the price rebounds off the current level, the buyers will again attempt to clear the overhead hurdle at the 20-day EMA. If they succeed, the pair could rally to $0.08 and thereafter to $0.09.

Related: XRP price pumps and dumps amid mysterious $51M whale transfers — What’s next?

DOT/USDT

The bulls could not push Polkadot (DOT) above the 50-day SMA ($7.82) in the past few days, indicating that bears continue to sell on minor rallies.

The downsloping 20-day EMA ($7.93) and the RSI in the negative territory indicate that bears have a slight edge. The negative momentum could pick up if bears sink the price below the strong support at $7. If that happens, the DOT/USDT pair could decline to the crucial support at $6.

Alternatively, if the price turns up from the current level or $7 and rises above the moving averages, the pair could attempt a rally to $9.17 and then to the overhead resistance at $10.

SHIB/USDT

Shiba Inu’s (SHIB) volatility picked up and the bulls pushed the price above the overhead resistance at $0.000014 on 25 August. However, the long wick on the day’s candlestick suggests that bears continue to sell on rallies.

The sellers are currently attempting to sustain the price below the 20-day EMA ($0.000013). If they succeed, the SHIB/USDT pair could drop to the next support at $0.000012. This is an important level for the bulls to defend because if it cracks, the decline could extend to $0.000010.

To invalidate this negative view, the buyers will have to push and sustain the price above $0.000014. If they manage to do that, the pair could rally to the stiff overhead resistance at $0.000018.

MATIC/USDT

Polygon’s (MATIC) rebound off the strong support at $0.75 is facing resistance near the 20-day EMA ($0.85). This suggests that the sentiment remains negative and bears are selling on rallies.

The sellers will make an attempt to sink the price below the strong support at $0.75. If they succeed, the MATIC/USDT pair could decline to $0.63. The bulls may mount a strong defense at this level but if the support cracks, the next stop could be $0.52.

This negative view could be invalidated in the near term if the price turns up from the current level and breaks above the 20-day EMA. If that happens, the pair could attempt a rally to the stiff overhead resistance of $1.05.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Crypto traders expect a range expansion once the Jackson Hole symposium is complete and the Fed’s perspectives on inflation, interest rate hikes and the health of the economy are made public.

Bitcoin (BTC) and several major cryptocurrencies have been trading sideways as traders avoid taking large bets before the United States Federal Reserve’s Jackson Hole Economic Symposium, which begins on Aug. 25. The volatility is likely to soar as investors get some clarity on the Fed’s stance in the next few days.

On Aug. 23, a team led by Goldman Sachs chief economist Jan Hatzius said that Fed chair Jerome Powell could sound dovish when he speaks on Aug. 26, reiterating that the central bank may move at a slower pace in future meetings. The analysts expect the Fed to raise rates by 50 basis points in the September meeting, which would be less than the 75 bps hike done in June and July.

Although the short-term price action remains uncertain, on-chain data suggests that Bitcoin may be undervalued, meaning it could provide strong returns if history repeats itself. According to Jarvis Labs resident analyst JJ, Bitcoin’s Market Capitalization versus Realized Capitalization indicator reading is at its lowest level since 2015. Bitcoin’s bottom in 2015 and 2019 formed when the indicator reached a low reading, but that has reached extremely low levels in 2022.

What are the critical levels to watch on the upside and the downside? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin has been trading near the support line of the ascending channel since Aug. 19. Although the bulls have defended the support successfully, they have failed to achieve a strong rebound off it. This indicates that demand dries up at higher levels.

The 20-day exponential moving average (EMA) ($22,523) has started to turn down and the relative strength index (RSI) is near 41, indicating that bears have a slight edge. If the price breaks below the support line of the channel, the selling could intensify and the BTC/USDT pair could drop to $18,900.

To invalidate this negative view, the bulls will have to push and sustain the price above the moving averages. If they do that, it will suggest that the pair could gradually climb to the resistance line of the channel near $26,000.

ETH/USDT

The bulls are aggressively defending the 50-day simple moving average (SMA) ($1,571), as seen from the long tail on the Aug. 22 and 23 candlestick. Ether (ETH) will now attempt to rise above the 20-day EMA ($1,712).

If that happens, the ETH/USDT pair could pick up momentum and rise toward the stiff overhead resistance near $2,000. The bears are expected to defend this level aggressively.

Contrary to this assumption, if the price turns down from the overhead resistance, it will suggest that bears are attempting to flip the 20-day EMA into resistance. The pair could then remain stuck between the moving averages for a few more days.

If the price breaks below the 50-day SMA and the $1,500 support, the selling could pick up momentum and the pair may plummet toward the strong support at $1,280.

A tight squeeze is usually followed by an expansion in volatility but it is difficult to preempt the direction of the breakout with certainty. Therefore, it is better to wait for the breakout to happen before initiating fresh positions.

BNB/USDT

BNB‘ rebound off the $275 level has been facing stiff resistance at the 20-day EMA ($301). A minor positive is that the bulls have not given up much ground as they expect the up-move to continue.

If the price turns up from the current level and breaks above $305, the BNB/USDT pair could rise toward the overhead resistance at $338. Such a move will form an inverse head and shoulders pattern, which will complete on a break and close above $338.

If that happens, the pair could rally to $420 and then to $460. The pattern target of this bullish setup is $493.

Alternatively, if the price turns down sharply from the current level, the pair could drop to $275. A break below this level will complete a head and shoulders pattern. The pair could then decline to $240 and later to $212.

XRP/USDT

Ripple (XRP) has been trading in a tight range between $0.33 and $0.35 for the past four days. This suggests indecision among the bulls and the bears.

If the price turns down and breaks below $0.33, the advantage could tilt in favor of the sellers. The XRP/USDT pair could then decline to the crucial level at $0.30. The bulls are likely to defend this level aggressively. A strong rebound off this level will suggest that the pair may remain range-bound between $0.30 and $0.39 for some more time.

On the other hand, if the price breaks above $0.35 and the moving averages, it will suggest that bulls are attempting to form a floor at $0.33. The pair could then rise to $0.39, which is an important level to keep an eye on. If bulls clear this hurdle, the pair could rally to $0.48.

ADA/USDT

Cardano (ADA) has been trading between $0.43 and $0.47 for the past four days. Although the bulls bought the dip to $0.43 with vigor, they have not been able to clear the overhead hurdle at $0.47.

The price action formed an inside-day candlestick pattern on Aug. 24, indicating indecision among buyers and sellers. If bulls thrust the price above $0.47, the ADA/USDT pair could rise to the moving averages. A break and close above this resistance could open the doors for a possible rally to the downtrend line.

Conversely, if the price turns down and breaks below $0.43, the pair could slide to the strong support at $0.40. This is an important level to watch out for because if it cracks, the pair could resume its downtrend.

SOL/USDT

Solana (SOL) is struggling to start a recovery as bears are posing a strong challenge near $37. The bears may now attempt to pull the price to the strong support at $32.

The bulls have successfully defended the $32 support on two previous occasions; hence, the level may again attract buyers. If the price rebounds off $32, the bulls will again try to push the SOL/USDT pair above the moving averages.

If they succeed, the pair could rally to the overhead resistance at $48. The buyers will have to propel the price above this level to signal a potential trend change.

On the contrary, if the price turns down and breaks below $32, it will suggest that bears are in control. The pair could then drop to the crucial support at $26.

DOGE/USDT

Dogecoin (DOGE) slipped below the trendline on Aug. 22 but the bulls purchased the drop as seen from the long tail on the day’s candlestick. However, a negative sign is that the bulls failed to clear the overhead resistance at the 50-day SMA ($0.07).

The bears will once again attempt to sink the price below the trendline. If they succeed, the DOGE/USDT pair could decline to $0.06. If this support also cracks, the next stop could be the crucial level of $0.05.

Contrary to this assumption, if the price turns up from the current level and rises above the 20-day EMA ($0.07), it will suggest strong demand at lower levels. The pair could then rise to the overhead resistance at $0.08 and later to $0.09.

Related: 3 reasons why Chiliz is up 35% this week — and where is CHZ price heading next?

DOT/USDT

Polkadot (DOT) has been attempting to climb above the 50-day SMA ($7.81) but the bears have held their ground. The long tail on the Aug. 22 and 23 candlestick shows strong buying at lower levels.

The bulls will have to push the price above the 50-day SMA and the 20-day EMA ($8.07) to clear the path for a possible rally to $9.17 and then $10. This is an important level to keep an eye on because a break and close above it could signal that the DOT/USDT pair may have bottomed out. The pair could then rise to the overhead resistance at $12.44.

On the contrary, if the price turns down from the moving averages, it will suggest that bears are active at higher levels. The sellers will then attempt to sink the pair below $7. If they manage to do that, the pair could slide to $6.

SHIB/USDT

Shiba Inu (SHIB) continues to trade near the 20-day EMA ($0.000013) for the past few days, which suggests a state of indecision among the bulls and the bears.

The flattening 20-day EMA and the RSI near the midpoint suggest that the SHIB/USDT pair could remain range-bound for the next few days. If the price sustains below the 20-day EMA, the pair could slide to $0.000012. This is an important support for the bulls to defend because a break below it could open the doors for a fall to $0.000010.

Alternatively, if the price turns up and breaks above $0.000014, the pair could start its northward journey toward $0.000018. The bulls will have to overcome this barrier to signal the start of a new uptrend.

MATIC/USDT

Polygon (MATIC) has been rising along the 50-day SMA ($0.82) for the past four days as bulls are buying the dips. The bears will attempt to stall the recovery at the 20-day EMA ($0.86).

If the price turns down from the 20-day EMA, the bears will make one more attempt to sink the MATIC/USDT pair below the critical level at $0.75. If that happens, the pair could slide to the next major support at $0.63.

Alternatively, if the support at $0.75 holds, the pair will attempt to climb above the 20-day EMA and rally to the overhead resistance at $1.05. The bulls will have to overcome this barrier to indicate the resumption of the uptrend.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

The price action in Bitcoin, altcoins and stocks reflects investors’ anxiety over the Fed’s rate hike plans, a weakening bear market rally and this week’s Jackson Hole economic symposium.

The European stock markets and the United States equities markets are both deep in the red on Aug. 22 as investors fear that aggressive rate hikes may not be off the table. 

Another thing keeping investors nervous could be the upcoming  Jackson Hole economic symposium, which is scheduled to begin on Aug. 25. Investors are concerned that Federal Reserve chairman Jerome Powell could further elaborate on the Fed’s hawkish stance and plans for future interest rate hikes.

This macro uncertainty has kept the institutional investors away from the crypto markets. CoinShares data showed that crypto investment products recorded weekly volumes of $1 billion, which is 55% lower than the yearly average.

On-chain analytics resource Material Indicators said that Bitcoin (BTC) has not broken below the July lows. This suggests that the bear market rally is not yet over. However, buyers will have to push the price above the 200-week moving average of near $23,000 to gain the upper hand.

Could Bitcoin and most major altcoins make a strong comeback in the next few days and what are the critical levels to watch out for? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The buyers defended the support line of the ascending channel on Aug. 19 and started a bounce but the recovery stalled at $21,800. This suggests that bears are posing a strong challenge near the moving averages.

A minor positive is that the long tail on the Aug. 22 candlestick shows that bulls are attempting to defend the support line with vigor. If bulls push the price above $21,800, the BTC/USDT pair could rise to the 20-day exponential moving average (EMA) ($22,725).

If the price turns down from this resistance, it will suggest that the sentiment has turned negative and traders are selling on rallies. That could increase the possibility of a break below the channel. If that happens, the selling momentum could pick up and the pair could plummet toward the June 18 low at $17,622.

Conversely, if buyers thrust the price above the 20-day EMA, it will suggest that the pair may extend its stay inside the channel for a few more days. The bulls will then try to push the price toward the resistance line of the channel.

ETH/USDT

Ether (ETH) plunged below the 20-day EMA ($1,718) and the breakout level of $1,700 on Aug. 19, which suggests that traders who had purchased at lower levels were exiting their positions.

The bulls attempted to stall the decline at the 50-day simple moving average (SMA)($1,549) but the weak bounce off it suggests a lack of aggressive buying at the level. This increases the likelihood of a break below the support.

If that happens and the ETH/USDT pair breaks below $1,500, the selling could intensify as the bulls may wait for the price to reach the next strong support before buying again. The pair could therefore decline to $1,280.

Conversely, if the price bounces off the current level and rises above the 20-day EMA, traders who did not buy at the 50-day SMA may buy aggressively lest they miss out on the up-move. That could push the price toward $2,000.

BNB/USDT

Binance Coin’s (BNB) bounce off the strong support at $275 is facing stiff resistance at the 20-day EMA ($301) but a minor positive is that the bulls have not ceded ground to the sellers. This indicates that buyers expect the recovery to continue further.

If the price rises above the 20-day EMA, the BNB/USDT pair could rally to the overhead resistance at $338. This is an important level to keep an eye on because a break and close above it will complete the bullish inverse head and shoulders pattern. This setup has a pattern target of $493.

It may not be a straight dash to the target objective as bears may attempt to stall the rally at $420 and then again at $460.

Conversely, if the price turns down from the current level and breaks below $275, the pair will complete a short-term head and shoulders pattern. That could start a decline toward the pattern target of $212.

It is better to wait for either pattern to complete before establishing a position because the setups tend to break down more often than not.

XRP/USDT

Ripple (XRP) remains stuck inside the range between $0.30 and $0.39. The bulls are attempting to defend the support at $0.33 but are facing stiff resistance at higher levels.

If the price turns down and breaks below $0.33, the likelihood of a drop to $0.30 increases. This level has previously acted as strong support; hence, traders may buy the dip, expecting a rally back to $0.39.

Another possibility is that the price bounces off $0.33 and breaks above the moving averages. If that happens, the XRP/USDT pair may rally to the stiff overhead resistance at $0.39.

It is difficult to predict the direction of the breakout from a range. Therefore, traders may wait for the break to happen before establishing fresh positions.

ADA/USDT

Cardano (ADA) slipped below the 50-day SMA ($0.49) on Aug. 19, indicating that bears have the upper hand. Buyers tried to start a relief rally on Aug. 20 but the weak bounce shows a lack of demand at higher levels.

The bears will now try to sink the price to the strong support at $0.40. This is an important level to keep an eye on because the bulls have defended the level successfully since May 12. A break and close below this support could signal the start of the next leg of the downtrend.

Conversely, if the price rebounds off $0.40, the buyers will attempt to push the ADA/USDT pair above the moving averages. If they manage to do that, the pair could rally to the downtrend line.

SOL/USDT

Solana (SOL) broke below the moving averages on Aug. 19, indicating that bears have the upper hand in the near term. The sellers will try to sink the price to the immediate support at $32.

If the price rebounds off $32, the bulls will attempt to push the SOL/USDT pair above the moving averages. If they succeed, it will suggest that the pair may rise toward the overhead resistance at $48.

Contrary to this assumption, if the price slips below $32, the pair could slide to the crucial support at $26. The bulls are expected to defend this level with all their might because the failure to do so may signal the resumption of the downtrend.

DOGE/USDT

Dogecoin (DOGE) bounced off the trendline on Aug. 20 but the bulls could not clear the overhead hurdle at the 20-day EMA ($0.07). This indicates that bears do not want to surrender their advantage and are selling on minor rallies.

The DOGE/USDT pair formed a Doji candlestick pattern on Aug. 21, which resolved to the downside on Aug. 22 and the price slipped below the trendline. If the price sustains below the trendline, the pair could further decline to $0.06. This is an important level for the bulls to defend because a break below it could result in a drop to the crucial support at $0.05.

To invalidate this bearish view, the bulls will have to push and sustain the price above the 20-day EMA. If that happens, it will suggest that bulls aggressively purchased the drop below the trendline. That could open the doors for a possible rally to the overhead resistance at $0.08.

Related: BTC to lose $21K despite miners’ capitulation exit? 5 things to know in Bitcoin this week

DOT/USDT

Polkadot (DOT) broke below the 50-day SMA ($7.78) on Aug. 19, indicating a lack of buying support from the bulls. The bears will now attempt to sink the price to the strong support at $6.

When the price is trading inside a large range, traders generally buy the rebound off the support by keeping a tight stop-loss. This improves the risk-to-reward ratio. Therefore, the likelihood of a bounce off the $6 support is high. If that happens, the DOT/USDT pair may remain range-bound between $6 and $10 for some more time.

The next trending move could start on a break below $6 or on a break above $10. If the support at $6 gives way, the pair may start the next leg of the downtrend.

SHIB/USDT

Shiba Inu (SHIB) is witnessing a tussle near the 20-day EMA ($0.000013) with both the bulls and the bears vying for supremacy. The buyers are attempting to push the price above the overhead resistance at $0.000014 but the bears have held their ground.

The 20-day EMA has flattened out and the relative strength index (RSI) is near the midpoint, indicating a balance between supply and demand. This balance could tilt in favor of the bulls if the price rises above $0.000014. If that happens, the SHIB/USDT pair could rise to the stiff overhead resistance at $0.000018.

Conversely, if the price breaks below $0.000012, the pair could tilt in favor of the sellers. The pair could then drop to the next strong support at $0.000010.

MATIC/USDT

Polygon (MATIC) has been consolidating in a large range between $0.75 and $1 for the past few days. The bulls purchased the dip to the support of the range but the rebound is facing stiff resistance from the bears at higher levels.

If bulls push the price above the 20-day EMA ($0.86), the MATIC/USDT pair could attempt a rally to the overhead resistance at $1 where the bears are likely to mount a strong defense. If the price turns down from this resistance, the pair could extend its stay inside the range for some more time.

Contrary to this assumption, if the price turns down from the current level and breaks below $0.75, it will suggest that bears are back in command. The pair could then decline to the next support at $0.63.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Bitcoin and altcoins sold-off sharply on Aug. 19, leading technical traders to forecast a possible drop to new yearly lows.

Bitcoin (BTC) and most major altcoins witnessed a sharp sell-off on Aug. 19, but there does not seem to be a specific trigger for the sudden drop. The sharp fall resulted in liquidations of more than $551 million in the past 24 hours, according to data from Coinglass.

Barring a V-shaped bottom, other formations generally take time to complete as buyers and sellers try to gain the upper hand. This tends to cause several random volatile moves that may be an opportunity for short-term traders, but long-term investors should avoid getting sucked into the noise.

Glassnode data shows that investors who purchased Bitcoin in 2017 or earlier are just doing that by holding their positions. The percentage of Bitcoin supply dormant for at least five years hit a new all-time high of 24.351% on Aug. 18, suggesting that holders are not willing to sell in panic or for minor gains.

Could Bitcoin and most altcoins challenge their June lows or will the bulls buy the current dip? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin’s major trend is down but the bulls are attempting to form a bottom. The price has been rising inside an ascending channel for the past few days. The failure of the bulls to push the price above the resistance line of the channel may have tempted short-term traders to book profits. That has pulled the price below the moving averages.

The BTC/USDT pair decline to the support line of the channel and when the price trades inside an ascending channel, traders usually attempt to buy the dips to the support line and sell near the resistance line.

Therefore, the likelihood of a bounce off the support line is high. If that happens, the buyers will try to push the pair above the moving averages. A break and close above the 20-day exponential moving average (EMA) ($23,265) could open the doors for a possible rally to the resistance line.

This positive view could invalidate if the price breaks and sustains below the channel. Such a move could open the doors for a possible drop to $18,626.

ETH/USDT

Ether (ETH) dipped below the 20-day EMA ($1,771) on Aug. 19, which is the first sign that the recovery may be losing steam. The important level to watch on the downside is $1,700 as it had acted as a strong support between Aug. 6 and 10.

If the price rebounds off $1,700 with strength, it will suggest that bulls are attempting to flip this level into support. The ETH/USDT pair could then rise to $1,960 and later to $2,030. A break above this level could indicate the resumption of the uptrend. The pair could then rally to the downtrend line.

Contrary to this assumption, if the price breaks and sustains below $1,700, it will suggest that traders who may have purchased at lower levels are aggressively closing their positions. That could pull the pair to the 50-day simple moving average (SMA) ($1,519).

BNB/USDT

BNB plummeted below the 20-day EMA ($304) on Aug. 17, indicating that the short-term traders may be booking profits. The decline continued further and the price slipped to the 50-day SMA ($272) on Aug. 19. This is an important level for the bulls to defend if they want to keep the recovery intact.

If the price turns up from the current level and rises above the 20-day EMA, the BNB/USDT pair could rise toward the overhead resistance at $338. That could form an inverse head and shoulders pattern, which will complete on a break and close above $338.

Conversely, if the price breaks below the 50-day SMA, the pair could slide to $240. Such a move will suggest that the pair may remain stuck inside a large range between $183 and $338 for some time.

XRP/USDT

The bulls failed to push Ripple (XRP) above the overhead resistance at $0.39 on Aug. 17, which suggests that bears continue to defend the level with vigor.

Usually, in a range, traders buy near the support and sell close to the resistance and that is what happened with the XRP/USDT pair.

The bulls may now wait for the price to drop near the support at $0.30 before buying. If the price rebounds off $0.30, it will indicate that the range-bound action may continue for a few more days.

The next directional move could start after buyers drive the price above $0.39 or bears sink the pair below $0.30. The price action inside a range is usually random and volatile. Hence, experienced traders generally wait for the breakout to happen before entering a position.

ADA/USDT

Cardano (ADA) broke below the 20-day EMA ($0.52) on Aug. 18, indicating that the bulls may have been hurrying to close their positions. This gave the bears a slight edge.

The sellers pressed on with their advantage on Aug. 19 and pulled the price below the 50-day SMA ($0.49). This increases the possibility that the ADA/USDT pair could decline to the crucial support at $0.40.

The bulls have defended this level on two previous occasions, hence the odds favor a bounce off it. If that happens, the pair could oscillate between $0.40 and $0.60 for some time. The bears will have to sink the pair below $0.40 to start the next leg of the downtrend.

SOL/USDT

Solana (SOL) bounced off the support line on Aug. 18 and the bulls tried to push the price above the 20-day EMA ($41). However, the bears defended the level successfully.

This exacerbated the selling on Aug. 19 and pulled the price below the 50-day SMA ($39). This invalidated the bullish ascending triangle pattern. The bears will now attempt to sink the SOL/USDT pair to $34.50.

If the price rebounds off $34.50, the pair could attempt a rally above the moving averages. If that happens, the pair could consolidate between $34.50 and $48 for some time. Conversely, a break below $34.50 could sink the pair to $31.

DOGE/USDT

Dogecoin (DOGE) turned down and broke below the breakout level of $0.08 on Aug. 18. This was the first indication that the break above $0.08 on Aug. 14 may have been a dead cat bounce.

The bears continued their selling and have pulled the price to the trendline of the ascending triangle pattern. A break below this level could invalidate the bullish setup and open the doors for a possible drop to $0.06. This level is likely to attract strong buying by the bulls.

Alternatively, if the price rebounds off the current level, it will suggest that the bulls are attempting to defend the trendline. The buyers will have to push the DOGE/USDT pair back above $0.09 to gain the upper hand.

Related: Nearly $55M worth of Bored Ape, CryptoPunks NFTs risk liquidation amid debt crisis

DOT/USDT

Polkadot (DOT) closed below the 20-day EMA ($8.46) on Aug. 17, which was the first indication that the break above $9 may have been a sucker’s rally. Sellers took advantage of the situation and pulled the price below the 50-day SMA ($7.75) on Aug. 19.

This opens the doors for a possible drop to the crucial support at $6. This level acted as a strong support on two previous occasions; hence, the bulls will again try to defend the level with all their might.

If the price rebounds off $6, the DOT/USDT pair could continue to trade inside a large range for a few days. The next strong move could start after bulls push the price above $10 or bears sink the pair below $6.

SHIB/USDT

In a downtrend, strong rallies usually end up as bull traps and that is what happened with Shiba Inu (SHIB). The buyers could not sustain the price above $0.000017 on Aug. 17 and build upon the momentum. That may have resulted in profit-booking by the short-term traders.

The bulls tried to resume the up-move on Aug. 16 but the bears held their ground. That aggravated the selling pressure and the bears pulled the price below $0.000014 on Aug. 18. The bears will try to solidify their position by sinking the price below the 50-day SMA ($0.000012).

To invalidate this bearish view, the bulls will have to push the price back above $0.000014. If they do that, it will suggest strong buying at lower levels and could clear the path for a possible rally to $0.000017. The SHIB/USDT pair could signal a trend change above $0.000018.

AVAX/USDT

Avalanche (AVAX) could not sustain above the breakout level of $26.38 on Aug. 17, indicating that traders were rushing to the exit. The selling continued and the price broke below the 50-day SMA ($22.93) on Aug. 19.

The bulls have to defend the support line or else the selling could intensify and the AVAX/USDT pair could decline to $16 and then to $13.71. A break and close below $13.71 could signal the start of the next leg of the downtrend.

Conversely, if the price rebounds off the support line, it will suggest that bulls are attempting to form a higher low. The buyers will have to push and sustain the price above $26.38 to gain the upper hand. Such a move will increase the likelihood of a break above $31.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Crypto and stock markets corrected as traders grew nervous ahead of August 17’s FOMC minutes, but the real stress point is whether traders will “buy the dip.”

Bitcoin’s (BTC) bounce fizzled out near $24,500 on Aug. 17, indicating that the recovery still faces stiff resistance from the bears. On-chain monitoring resource Material Indicators said the ask liquidity on the Fire Charts was similar to prior local tops.

Another reason for caution among crypto investors was that the recovery in the S&P 500 was reaching extreme overbought levels in the near term. Jurrien Timmer, director of global macro at asset manager Fidelity Investments, said that 88% of stocks in the S&P 500 were trading above their 50-day moving average, which was “stunning.”

Some were also cautious as Michael Burry, the investor who famously shorted the 2008 housing bubble, almost emptied his equity portfolio in the second quarter of this year in expectation of a sharp fall in the stock markets.

While the short-term looks uncertain, corporate investors who usually are in the game for the long term have increased their investments in the blockchain industry, including the crypto space. The top 40 publicly traded companies invested approximately $6 billion into blockchain startups between September 2021 to June 2022, according to a blog by Blockdata on Aug. 17. That is more than three times the $1.9 billion invested by corporations between January 2021 to September 2021.

What are the critical levels on the downside that will suggest that the recovery could be faltering? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The bulls attempted to push Bitcoin above the overhead resistance at $24,668 on Aug. 17 but the long wick on the candlestick shows that bears are defending the level aggressively. The price turned down and has reached the 20-day exponential moving average (EMA) ($23,496). This level is likely to attract strong buying by the bulls.

The 20-day EMA has flattened out and the relative strength index (RSI) has dropped close to the midpoint, indicating a balance between supply and demand. If the price sustains below the 20-day EMA, the balance could tilt in favor of the bears and the pair may drop to the 50-day SMA ($22,160).

Conversely, if the price rebounds off the current level and breaks above $25,200, it will suggest that bulls are back in command. The BTC/USDT pair could then rally to $28,000 where the bears may again mount a strong defense.

ETH/USDT

Ether (ETH) turned up from $1,853 on Aug. 16 and the bulls tried to push the price above $2,000 on Aug. 17. However, the long wick on the day’s candlestick suggests that traders may be lightening positions on rallies.

The bears will try to take advantage of the situation and attempt to pull the price to the strong support zone between the 20-day EMA ($1,772) and $1,700. This is an important zone for the bulls to defend if they want to keep the uptrend intact.

If the price rebounds off this support zone, the ETH/USDT pair could retest the resistance at $2,030. A break and close above this level could clear the path for a rally to the downtrend line.

Instead, if the $1,700 support cracks, the pair could drop to the 50-day SMA ($1,492). That could delay the start of the next leg of the up-move and keep the pair range-bound for a few days.

BNB/USDT

The buyers tried to push BNB higher on Aug. 17 but the long wick on the candlestick suggests that bears are active at higher levels. That pulled the price to the 20-day EMA ($307).

If the price slips below the 20-day EMA, the BNB/USDT pair could decline to the 50-day SMA ($270). This level may again attract buying and if the price rebounds off it, the pair could consolidate between $270 and $338 for some time.

Another possibility is that the price rebounds off the current level with strength. If that happens, it will suggest that the sentiment remains positive and traders are buying on dips. The bulls will then again attempt to clear the overhead resistance zone between $338 and $350. If they succeed, the pair could start a rally to $383 and then to $413.

XRP/USDT

The bulls successfully defended the zone between the moving averages and tried to push Ripple (XRP) above the overhead resistance at $0.39 on Aug. 17. The long wick on the day’s candlestick shows that bears are not willing to surrender and they continue to defend the overhead resistance with vigor.

If the price breaks and closes below the 20-day EMA ($0.37), the next stop could be the 50-day SMA ($0.35). This is an important level for the bulls to defend because a break and close below it could suggest that the XRP/USDT pair may continue its range-bound action between $0.30 and $0.39 for a few more days.

Alternatively, if the price rebounds off the moving averages, the bulls will again try to clear the overhead hurdle at $0.39. If they succeed, the pair could rally to $0.48 and then to $0.54.

ADA/USDT

Cardano (ADA) bounced off the breakout level of $0.55 on Aug. 16 but the bears continue to pose a strong challenge at higher levels as seen from the long wick on the Aug. 17 candlestick.

Sharp selling by the bears has pulled the price to the important support at the $20-day EMA ($0.53). A break and close below this level will suggest that the short-term advantage has tilted in favor of the sellers. The ADA/USDT pair could then decline to the 50-day SMA ($0.49).

Conversely, if the price rebounds off the 20-day EMA, it will suggest strong demand at lower levels. The bulls will then try to resume the up-move by pushing the pair above $0.60. That could open the doors for a possible rally to $0.63 and then to $0.70.

SOL/USDT

Solana (SOL) attempted a rebound off the 20-day EMA ($42) but the long wick on the Aug. 17 candlestick shows that the bears are selling on every minor rise.

The bears will try to sink the price below the support line. If they manage to do that, it will invalidate the developing bullish ascending triangle pattern. The SOL/USDT pair could then decline to $37.50 and later to $34.50.

Alternatively, if the price rebounds off the moving averages, it will indicate that bulls may be accumulating on dips. The buyers will then try to push the price above the overhead resistance at $48. If they succeed, the bullish setup will complete and the pair may start a rally to $60.

DOGE/USDT

The bears pulled Dogecoin (DOGE) below the breakout level of $0.08 on Aug. 15 but could not sustain the lower levels. The bulls purchased the dip aggressively and resumed the recovery on Aug. 16.

The bears are trying to stall the recovery at $0.09 but if bulls do not allow the price to dip below $0.08, the likelihood of a rally to $0.10 increases. This is an important level to keep an eye on because a break and close above it could signal a potential trend change.

The 20-day EMA ($0.07) has started to turn up and the RSI is in the positive territory, indicating that bulls have the upper hand. To invalidate this bullish view, the bears will have to sink and sustain the price below the trendline of the triangle.

Related: Fake Manchester United token soars 3,000% after Elon Musk jokes about buying team

DOT/USDT

The bulls successfully defended the 20-day EMA ($8.62) on Aug. 15 and 16 but could not achieve a strong rebound off it. Attempts by the bulls to push Polkadot (DOT) above the overhead resistance at $9 met with stiff resistance on Aug. 17.

The bears are attempting to sustain the price below the 20-day EMA. If they succeed, it could trap several aggressive bulls who may have purchased at higher levels. That could sink the DOT/USDT pair to the 50-day SMA ($7.72).

Conversely, if the price turns up from the current level and rises above $9, it will suggest that bulls are buying aggressively at lower levels. The bulls will then attempt to push the pair above the overhead resistance at $9.68 and resume the recovery. The pair could then rally to $10.80 and later to $12.44.

SHIB/USDT

Shiba Inu’s (SHIB’s) correction stalled at $0.000015 on Aug. 15 but the bulls are facing stiff resistance at the overhead resistance of $0.000017 as seen from the long wick on the Aug. 16 and 17 candlesticks.

The failure to clear the overhead hurdle may embolden the bears who will try to pull the price to the strong support at $0.000014. This is an important level for the bulls to defend because a break and close below it could weaken the positive momentum.

The SHIB/USDT pair could then remain stuck inside a large range between $0.000010 and $0.000018 for a few days.

Alternatively, if the price turns up from the current level and rises above the $0.000017 to $0.000018 overhead resistance zone, the pair could rise to $0.000022. If bulls clear this hurdle, the rally could extend to $0.000026.

AVAX/USDT

Avalanche (AVAX) continues to slide toward the breakout level of $26.38. The bulls are likely to buy the dip and attempt to flip this level into support.

If the price rebounds off $26.38 with strength, the buyers will again try to push the AVAX/USDT pair above the overhead resistance at $31. If they succeed, the pair could rally to $33 and later to the pattern target of $39.05.

Contrary to this assumption, if the price breaks below the breakout level, several aggressive bulls may get trapped. That could result in a decline to the 50-day SMA ($22.70) and then to the support line of the ascending triangle.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Bitcoin and altcoins met selling at key overhead resistance levels and investors are unsure whether traders will buy the current dip.

Bitcoin (BTC) has been witnessing a tough battle between the bulls and the bears near the $25,000 level. A clear winner may not emerge in the short term due to a lack of a catalyst and because there is no major macroeconomic data scheduled for this week in the United States. Data points from Asia or Europe may increase volatility, but they are unlikely to start a new directional move.

Anthony Scaramucci, founder and managing partner of Skybridge Capital, in an interview with CNBC, advised investors to ride out the current uncertainty in cryptocurrencies and “stay patient and stay long term.” He expects Bitcoin to reward investors immensely with a sharp uptrend over the next six years.

Along with the focus on Bitcoin, investors are also keeping a close eye on Ether (ETH) ahead of its Merge scheduled for Sept. 15. A whale address that had participated in the genesis ICO but had remained dormant for three years has transferred about 150,000 Ether on Aug. 14. This has led to differing views with some speculating that the whale may dump his holdings after the Merge but others believe that the transfers may have been done to stake the huge quantity of Ether.

Could buying emerge at lower levels and resume the up-move in Bitcoin and the altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The bulls tried to resume the up-move in Bitcoin but the bears sold aggressively at $25,211 and pulled the price down to the 20-day exponential moving average (EMA) ($23,483). This resulted in the formation of an outside-day candlestick pattern on Aug. 15.

The gradually upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate advantage to buyers. If the price rebounds off the 20-day EMA, it will suggest that bulls are buying the dips to this level. That could improve the prospects of a break and close above $24,668.

If that happens, the pair could start its northward march toward $28,000 where the bears may again pose a strong challenge.

Another possibility is that the bears sink the price below the 20-day EMA. If that happens, the pair could drop to the 50-day simple moving average (SMA) ($22,037) and later to the uptrend line.

ETH/USDT

Ether repeatedly rose above the psychological resistance at $2,000 for the past two days but the bulls could not sustain the higher levels. This suggests that bears are posing a stiff challenge at this level.

The ETH/USDT pair could decline to the breakout level at $1,700. This is an important level to watch out for because if bulls flip $1,700 into support, it will increase the likelihood of a break above $2,000. If that happens, the pair could rally to the downtrend line.

The upsloping 20-day EMA ($1,756) and the RSI in the positive territory indicate that bulls are in control. To invalidate this bullish view, bears will have to sink and sustain the price below the 20-day EMA. That could sink the pair to the 50-day SMA ($1,465).

BNB/USDT

BNB‘s up-move hit a hurdle at the overhead resistance at $338. The bears will now try to sink the price to the immediate support at the 20-day EMA ($306).

If the price rebounds off this support, the buyers will make another attempt to push the BNB/USDT pair above the $338 to $350 resistance zone. The upsloping 20-day EMA and the RSI in the positive territory indicate the path of least resistance is to the upside.

This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. If that happens, the short-term traders may rush to the exit and that could pull the pair to the 50-day SMA ($266).

XRP/USDT

The bulls tried to push XRP above the overhead resistance at $0.39 on Aug. 13 and 14 but the bears held their ground. This may have attracted profit-booking from the short-term traders, which pulled the price below the 20-day EMA ($0.37).

If bears sink the price below the 50-day SMA, the XRP/USDT pair could stay range-bound between $0.30 and $0.39 for some more time. The flattish 20-day EMA and the RSI near the midpoint also suggest a consolidation in the near term.

Conversely, if the price rebounds off the moving averages, it will indicate that lower levels are attracting buyers. The bulls will then again try to clear the overhead hurdle and push the pair to $0.48 and later to $0.54.

ADA/USDT

The bulls pushed Cardano (ADA) above the overhead resistance at $0.55 on Aug. 13 but could not maintain the momentum on Aug. 14. This suggests that bears are active at higher levels.

The price turned down on Aug. 15 and reached the breakout level of $0.55. The zone between $0.55 and the 20-day EMA ($0.53) is likely to attract strong buying by the bulls. If the price rebounds off this zone, the buyers will again attempt to resume the up-move and push the ADA/USDT pair to $0.63 and then to $0.70.

On the contrary, if the price turns down and breaks below the 20-day EMA, it will suggest that the break above $0.55 may have been a bull trap. The pair could then drop to the 50-day SMA ($0.49).

SOL/USDT

Solana (SOL) rose to the overhead resistance at $48 on Aug. 13 but the bulls could not overcome this barrier. The bulls again tried to clear the overhead hurdle on Aug. 15 but the bears did not relent.

If the SOL/USDT pair breaks below the 20-day EMA ($42), the next stop could be the support line. This is an important level for the bulls to defend because a break and close below it could invalidate the bullish ascending triangle pattern. The pair could then decline to $32.

Conversely, if the price rebounds off the 20-day EMA, the bulls will again try to push and sustain the pair above $48. If they manage to do that, the bullish setup will complete and the pair could rally to $60.

DOGE/USDT

Dogecoin (DOGE) bounced off the 20-day EMA ($0.07) on Aug. 12 and broke above the overhead resistance at $0.08 on Aug. 14. This completed the bullish ascending triangle pattern but the bulls could not sustain the breakout.

The bears sold at higher levels and pulled the price back below the breakout level on Aug. 15. A minor positive is that lower levels are attracting buyers, as seen from the long tail on the day’s candlestick. If the price sustains above $0.08, the buyers will try to resume the up-move and push the DOGE/USDT pair to $0.10.

Contrary to this assumption, if the price slips below the moving averages and the trendline of the triangle, it will invalidate the bullish setup. The pair could then sink to $0.06.

Related: Crypto-focused venture firm Dragonfly acquires hedge fund: Bloomberg

DOT/USDT

Polkadot (DOT) rose above the overhead resistance of $9.65 on Aug. 13 but the bulls could not sustain the higher levels. This may have tempted the short-term traders to book profits.

The DOT/USDT pair dipped below the breakout level of $9 on Aug. 14 and the price reached the 20-day EMA ($8.63) on Aug. 15. This is an important level to keep an eye on because a break below it could suggest that the bullish momentum has weakened. The pair could then decline to the 50-day SMA ($7.68) and stay range-bound for some time.

Alternatively, if the price rebounds off the 20-day EMA, the bulls will try to clear the overhead resistance at $9.68. If they pull it off, the pair could rise to $10.80 and later to $12.44.

SHIB/USDT

Shiba Inu (SHIB) had been trading above $0.000012 since Aug. 7 but the up-move had failed to pick up momentum. That changed with the sharp rally on Aug. 14, which pushed the price above the overhead resistance at $0.000017.

However, the bears have not given up. They sold the rise above $0.000017 and pulled the price back below the level on Aug. 15. The SHIB/USDT pair could find support at $0.000015 and then at $0.000014. If the price rebounds off either level, the buyers will again try to clear the overhead hurdle. If they succeed, the pair could rally to $0.000022.

On the contrary, if the price breaks below $0.000014, it will indicate that the pair could oscillate in a large range between $0.000010 and $0.000018 for a few more days.

AVAX/USDT

Buyers tried to push Avalanche (AVAX) above the overhead resistance on Aug. 13 but the bears stalled the attempt at $30.35. This suggests that bears are active at higher levels.

The AVAX/USDT pair could decline to the breakout level of $26.38, which is just above the 20-day EMA ($26.34). The bulls are expected to defend this level with vigor. If the price rebounds off $26.38, it will suggest demand at lower levels. The pair could then consolidate between $26.38 and $31 for some time.

If bears sink the price below $26.38, several aggressive bulls may get trapped. That could sink the pair to the 50-day SMA ($22.39).

Conversely, if the price rebounds off the current level and rises above $31, it will suggest the start of a rally to $33 and later to the pattern target of $39.05.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Bitcoin and many altcoins are carving out bottoming patterns as sentiment across the crypto and equities markets continues to improve.

Bitcoin (BTC) could not overcome the barrier at $25,000 on Aug. 11 even though it had two catalysts in the form of a “favorable” Consumer Price Index print and news that BlackRock — the world’s largest asset manager, overseeing over $10 trillion in total assets — had launched a spot Bitcoin investment product. 

In comparison, Ether (ETH) has managed to hold on to its recent gains on news that the Goerli testnet had successfully activated proof-of-stake, clearing the path for Ethereum’s mainnet transition planned for Sept. 15 or 16. Data from Santiment shows that Ether whale transactions have increased along with possible whale accumulation.

However, analysts remain divided about the prospects of the current recovery. While some believe that Bitcoin’s rally could rise above $28,000, others are not so bullish and they expect the price to turn down and resume the downtrend.

Could buyers clear the overhead hurdle in Bitcoin and select altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin nudged above the overhead resistance at $24,668 on Aug. 11 but the bulls could not sustain the higher levels. This indicates that bears have not yet given up and are selling on rallies.

The price remains squeezed between the 20-day exponential moving average (EMA) ($23,151) and $24,668. Usually, a tight range trading is followed by a range expansion but it is difficult to predict the direction of the breakout with certainty.

In this case, the 20-day EMA is gradually sloping up and the relative strength index (RSI) is in the positive territory, indicating the path of least resistance is to the upside.

If buyers thrust and sustain the price above $25,000, the bullish momentum could pick up and the pair could rally to $28,000 and then to $32,000.

This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. The pair could then decline to the 50-day simple moving average (SMA) ($21,845).

ETH/USDT

Ether attempted to rise above $2,000 on Aug. 11 but the long wick on the day’s candlestick suggests that bears are defending the level with vigor.

However, a positive sign is that the bulls have not ceded ground to the bears. This suggests that traders are not hurrying to book profits as they anticipate the up-move to continue.

The upsloping moving averages and the RSI near the overbought territory indicate advantage to buyers. If bulls drive the price above $2,000, the ETH/USDT pair could rally to the downtrend line.

Alternatively, if the price turns down sharply from the current level, the bears will try to sink the pair to the breakout level of $1,700. The bulls are expected to buy the dip to this support.

BNB/USDT

BNB has been facing stiff resistance at the overhead resistance zone between $338 to $350. Although bears have repeatedly thwarted attempts by the bulls to clear this hurdle, the buyers have not given up much ground. This indicates that the bulls are not rushing to the exit as they expect a move higher.

A tight consolidation near the overhead resistance increases the likelihood of a break above it. If that happens, the BNB/USDT pair could attempt a rally to $380 and then to $414.

The important support to watch out for on the downside is the 20-day EMA ($300). If bears sink the price below this level, the pair could decline to $275 and then to the 50-day SMA ($261). A break below this support could tilt the advantage in favor of the bears.

XRP/USDT

Ripple (XRP) remains stuck between the overhead resistance at $0.39 and the 20-day EMA ($0.37). The bears attempted to resolve this uncertainty in their favor on Aug. 9 and 10 but the bulls purchased the dip and pushed the price back above the 20-day EMA.

The buyers tried to push the price above $0.39 on Aug. 11 but the bears held their ground. This indicates that $0.39 and the 50-day SMA ($0.35) are the critical levels to watch out for in the short term.

If buyers clear the overhead hurdle, the XRP/USDT pair could rally to $0.48 and later to $0.54. On the contrary, if the price slips below the 50-day SMA, the pair could slide toward the crucial support at $0.30.

ADA/USDT

Buyers attempted to push Cardano (ADA) above the overhead resistance at $0.55 on Aug. 11 but the bears held the level successfully. The price could now drop to the 20-day EMA ($0.51).

The tight range trading between the 20-day EMA and $0.55 is unlikely to continue for long. If buyers drive the price above $0.55, the ADA/USDT pair could rally to $0.63 and then to the stiff overhead resistance at $0.70.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the bears will attempt to challenge the support at $0.45. If the support holds, the pair may extend the consolidation between $0.45 and $0.55 for some more time.

SOL/USDT

Solana (SOL) bounced off the 50-day SMA ($39) on Aug. 10, indicating that bulls continue to buy at lower levels. The bulls attempted to push the price to the overhead resistance at $48 but the bears stalled the recovery at $45.32 on Aug. 11.

The SOL/USDT pair could continue to trade inside the ascending triangle formation for some more time. The bears will have to sink the price below the support line to invalidate this bullish setup.

Alternatively, the bulls will have to push and sustain the price above $48 to complete the bullish pattern. If that happens, the pair could rally to $60 and then make a move to the pattern target at $71.

DOGE/USDT

Dogecoin (DOGE) once again turned down from the overhead resistance at $0.08 on Aug. 11, indicating that bears continue to defend the level aggressively.

The bears will attempt to sink the price below the moving averages and challenge the trendline of the ascending triangle pattern. A break and close below this support will invalidate the bullish setup, opening the doors for a possible retest of $0.06.

Contrary to this assumption, if the price rebounds off the moving averages, it will suggest that bulls continue to buy at lower levels. The bulls will have to push the price above $0.08 to complete the ascending triangle pattern. If that happens, the DOGE/USDT pair may rally to $0.10.

Related: 3 cryptocurrencies that stand to outperform ETH price thanks to Ethereum’s Merge

DOT/USDT

Polkadot (DOT) has been witnessing a close battle between the bulls and the bears near the breakout level of $9. The bears are attempting to pull the price back below $9 while the bulls are trying to flip the level into support.

The rising 20-day EMA ($8.47) and the RSI in the positive territory, indicating advantage to buyers. If the price rises from the current level and breaks above $9.65, the DOT/USDT pair could rally to $10.80 and later to $12.

Alternatively, if the price breaks below the strong support zone of $9 and the 20-day EMA, it will suggest that the recent breakout may have been a bull trap. The pair could then decline to the 50-day SMA ($7.62).

MATIC/USDT

Polygon (MATIC) has been trading in a tight range between the 20-day EMA ($0.88) and $0.96 for the past few days, indicating indecision among buyers and sellers.

If this uncertainty resolves to the upside, the MATIC/USDT pair could rally to the stiff overhead resistance at $1.02. The bulls will have to overcome this barrier to signal the start of the next leg of the up-move to $1.26 and later to $1.50.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the short-term advantage could tilt in favor of the bears. The pair could then decline to the strong support at $0.75.

AVAX/USDT

Avalanche (AVAX) has been trading above the breakout level of $26.38 for the past few days which suggests that bulls are in no hurry to surrender their advantage.

The gradually rising 20-day EMA ($25.6) and the RSI near the overbought zone indicate advantage to buyers. If bulls propel the price above $31, the AVAX/USDT pair could pick up momentum and rally to $33 and later to the pattern target of $39.05.

This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. If that happens, the pair could decline to the 50-day SMA ($21.91) and then to the support line.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.