Altcoin prices plunged after the United States Securities and Exchange Commission (SEC) announced lawsuits against Binance and Coinbase earlier in the week. In addition to the action against the two largest crypto exchanges, investors appear to be nervous that the The SEC Labeled 23 Cryptocurrencies As Securities in both trials. That brings the total number of cryptocurrencies named securities by the SEC to 67.
Amongst the chaos, one minor positive is that Bitcoin (BTC) and ether (ETH) have held up relatively well. This suggests that institutional investors are not panicking and dumping their positions. Due to its superior performance, Bitcoin domain it has risen to a year-to-date high of 47.6% and Ether's to 20%.
Near-term uncertainty is likely to keep a number of investors on the sidelines. During this period, cryptocurrencies that have held up generally tend to do well when market sentiment improves.
Let's look at the top 5 cryptocurrencies that are trying to stay above their respective support levels and are trying to start a bounce. What are the important support and resistance levels to watch out for?
Bitcoin Price Analysis
Bitcoin once again fell to the crucial support at $25,250 on June 10, indicating that the bears are keeping up the pressure. Repeated testing of a support level at short intervals tends to weaken it.
The falling moving averages and the 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 may witness panic selling. The pair could then plummet to the psychologically vital $20,000 level. Buyers are expected to protect this level with all their might.
If the bulls want to avoid 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 can first rise to the 50-day simple moving average ($27,464) and then to the resistance line of the channel. Buyers will have to push the price above this level to signal a resumption of the bullish move.
The 4-hour chart shows that the recovery from the $25,250 support is facing selling at the 20-day EMA. This indicates that the bears are not giving the bulls any chance to come back. The bears will have to sink the price below $25,250 to further consolidate their position.
Conversely, if the price rally and break above the 20 day EMA, the pair could rally to the 50 day EMA. If this level is cleared, the pair is likely to move towards $27,400.
Ether Price Analysis
Ether has been in a corrective 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 avoided a breakdown while defending the strong support at $1,700.
The bulls will try to initiate a relief rally that could reach to the 20-day EMA ($1835). This is an important level to watch because a breakout and close above it will suggest that the ETH/USDT pair may remain range bound between $1,700 and $2,000 for some time.
Rather, the sellers will try to stop the rally and pull the price below the $1,700 support. If they can do this, the couple can begin the next stage of the correction. There is minor support at $1,600, but if it doesn't hold, the pair may crash to $1,352.
The 4-hour chart shows that the bulls had previously vigorously protected the $1,700 level and may try again. Buyers will have to cross the hurdles at the moving averages to start a sustained rally that could take the price to $1,920.
Conversely, if the price turns down from the current level or the moving averages, the bears will try to sink the pair below $1,700. If they are successful, the selling may accelerate and the pair could retest $1,352.
XRP Price Analysis
XPR (XRP) turned down from overhead resistance near $0.56 on June 10 and nosedived below the 20-day EMA ($0.50).
However, a positive sign is that buyers quickly bought the dip of the 50-day SMA ($0.47) as seen on the long tail of the day's candle. The 20-day EMA is an important level for bulls because if they hold the price above it, the XRP/USDT pair can reach near $0.56 again.
Instead, if the price turns down and falls below the 20 day EMA, it will suggest that the higher levels are attracting sellers. The pair can then drop to the 50-day SMA. A break and close below this level can initiate a deeper drop to $0.41.
The 4 hour chart shows that the rally is facing selling near the 20 day EMA. This suggests that near-term sentiment remains negative and the bears are selling rallies. If the price turns down from the current level, the bears will try to pull the pair below $0.47. If they manage to do that, the pair can slide to $0.44.
On the other hand, if the buyers push the price above the moving averages, it will clear the way for a potential rally to $0.55.
Related: US Will Find the 'Right Bottom Line' for Crypto, Eventually: Coinbase CEO
Lido DAO Price Analysis
Lido DAO (LDO) has been falling inside a descending channel pattern for the past few days, indicating that the bears are in control.
The LDO/USDT pair fell sharply on June 10, but the long tail of the day's candlestick shows that the bulls are aggressively buying dips to support at $1.57. The buyers will try to initiate a rally that can reach the moving averages.
However, the sellers likely have other plans. They would not want to give buyers any leeway and will try to lower the price to $1.57. If this level is broken, the pair can begin its decline towards the support line of the channel near $1.
The deeply oversold levels on the RSI suggest that a relief rally may be just around the corner. The buyers tried to initiate a rally, but the bears did not allow the price to rise above $1.90. Therefore, this becomes a major hurdle for buyers to cross to initiate a recovery.
The pair could then rally to the 20 day EMA where the bulls are likely to find strong selling from the bears. Buyers need to clear this hurdle to initiate a stronger rally. This positive view will be invalidated in the short term if the price falls below $1.65.
Render Token Price Analysis
Render Token (RNDR) corrected sharply on June 10 and fell below the uptrend line, but one minor positive is that the bulls are trying to push the price above the breakout level.
If the price sustains above the uptrend line, it will suggest that the recent breakout may have been a bear trap. The RNDR/USDT pair could rally towards the 20-day EMA ($2.31), where it is likely to face its real test.
Alternatively, if the price fails to sustain above the uptrend line, it will suggest that the bears have turned the uptrend line into resistance. The pair could then extend its 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 breakout 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 out of this zone, the pair can rally to $2.40.
Conversely, if the price continues below the current level and falls below $1.80, it will signal the resumption of the downtrend. The pair can then drop to $1.60 where the 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 do their own research when making a decision.
This article is for general information purposes and is not intended to be and should not 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 and opinions of Cointelegraph.
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