Altcoin prices crashed after the U.S. Securities and Exchange Commission (SEC) announced lawsuits against Binance and Coinbase earlier this week. Besides the action against the two biggest crypto exchanges, investors seem to be nervous as the SEC has labeled 23 cryptocurrencies as securities in the two lawsuits. This brings the total number of cryptocurrencies qualified as securities by the SEC to 67.
Amid the chaos, a small silver lining is that Bitcoin (BTC) and Ether (ETH) have held up relatively well. This suggests that institutional investors are not panicking and abandoning their positions. Due to their outperformance, Bitcoins dominance hit a year-to-date high of 47.6% and Ether’s high of 20%.
Short-term uncertainty should keep many investors at bay. During this period, 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 hold above their respective support levels and attempting to start a rebound. What are the important support and resistance levels to watch?
bitcoin price analysis
Bitcoin once again fell to the crucial support at $25,250 on June 10, indicating that the bears are keeping the pressure on. Repeated retesting of a support level in short intervals tends to weaken it.
The descending moving averages and the Relative Strength Index (RSI) in negative territory indicate that the bears are in control. If the support zone between $25,250 and $23,896 breaks down, the BTC/USDT pair could see a panic sell. The pair could then drop to the psychologically vital $20,000 level. Buyers are expected to protect this level with all their might.
If the bulls want to prevent a sharp decline, they will need 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 then to the resistance line of the channel. Buyers will need to push the price above this level to signal the resumption of the upside.
The 4-hour chart shows recovery from the $25,250 support facing selling at the 20-EMA. This indicates that the bears give no opportunity for the bulls to come back. The bears will need to drive the price down below $25,250 to further consolidate their position.
On the contrary, if the price goes up and breaks above the 20-EMA, the pair could rally to the 50-SMA. If this level is removed, the pair should move towards $27,400.
Ether Price Analysis
Ether has been in a correction phase for several days. The bears pulled the price below the 50% Fibonacci retracement level of $1,755 on June 10, but the bulls prevented a slump by defending strong support at $1,700.
The bulls will attempt to initiate a relief rally that may reach the 20-day EMA ($1,835). This is an important level to watch, as a breakout and close above it suggests ETH/USDT could stay in the $1,700-$2,000 range for some time.
On the contrary, the sellers will attempt to block the rally and pull the price below the $1,700 support. If they can achieve this, the pair can begin the next leg of the correction. There is minor support at $1,600 but if it does not hold, the pair may crash to $1,352.
The 4-hour chart shows that the bulls had previously protected the $1,700 level with vigor and they might try to do so again. Buyers will need to break through the moving average hurdles to start a sustained rally that could take the price to $1,920.
On the contrary, if the price declines from the current level or the moving averages, the bears will again attempt to drag the pair down below $1,700. If successful, the sell-off could gather momentum and the pair could retest $1,352.
XRP Price Analysis
XRP (XRP) declined from overhead resistance near $0.56 on June 10 and dipped below the 20-day EMA ($0.50).
However, a positive sign is that buyers quickly bought the dip in the 50-day SMA ($0.47), as seen by the long tail of the day’s candlestick. The 20-day EMA is an important level for the bulls because if they hold the price above, the XRP/USDT pair could once again reach near $0.56.
Instead, if the price declines 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 could trigger a deeper drop to $0.41.
The 4-hour chart shows that the rally is facing a selloff near the 20-EMA. This suggests that short-term sentiment remains negative and bears are selling on rallies. If the price declines from the current level, the bears will try to push the pair below $0.47. If they succeed, the pair could slide to $0.44.
On the other hand, if the buyers push the price above the moving averages, this will pave the way for an eventual rally to $0.55.
Related: US Will Eventually Find ‘Right Bottom Line’ For Crypto – Coinbase CEO
Lido DAO Price Analysis
Lido DAO (LDO) has fallen inside a descending channel pattern for the past few days, indicating that the bears are in control.
The LDO/USDT pair dipped sharply on June 10, but the long trail on the day’s candlestick shows that the bulls are aggressively buying dips towards the support at $1.57. Buyers will try to start a recovery that could reach the moving averages.
However, sellers are likely to have other plans. They wouldn’t give buyers leeway and will try to drive the price down to $1.57. If this level cracks, the pair may begin its descent towards the channel support line near $1.
Deeply oversold RSI levels suggest a relief rally may be imminent. The buyers tried to initiate a rally, but the bears did not allow the price to rise above $1.90. Therefore, it becomes a significant hurdle for buyers to cross to initiate a recovery.
The pair could then reach the 20-EMA where the bulls are likely to encounter strong selling by the bears. Buyers need to overcome this hurdle to start a stronger rally. This positive view will be invalidated in the short term if the price dips below $1.65.
Render Token Price Analysis
Render Token (RNDR) corrected sharply on June 10 and dipped below the uptrend line, but a small bright spot is that the bulls are trying to push the price back above the breakdown level.
If the price holds above the uptrend line, it will suggest that the recent breakout may have been a bear trap. The RNDR/USDT pair could then climb towards the 20-day EMA ($2.31) where it is likely to face its true test.
Alternatively, if the price fails to hold above the uptrend line, it will suggest that the bears have reversed the uptrend line at resistance. The pair could then extend its decline and fall 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 have held their ground. The area between the uptrend line and the 20-EMA remains the key level to watch. If the price breaks above this area, the pair could rally to $2.40.
On the contrary, if the price continues to decline from the current level and breaks below $1.80, this will signal the resumption of the downtrend. The pair can then drop to $1.60 where buyers are likely to mount a strong defense.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general informational purposes and is not intended to be and should not be considered 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 and opinions of Cointelegraph.