Bitcoin’s attempt to recover stalled near $24,500 on August 17, signaling resistance from bears. On-chain monitoring resource Material Indicators noted a similarity in the ask liquidity on the Fire Charts to previous local tops.
There is caution among crypto investors as the recovery in the S&P 500 is reaching extremely overbought levels in the near term. Fidelity Investments’ director of global macro, Jurrien Timmer, revealed that 88% of S&P 500 stocks were trading above their 50-day moving average, which is significant. Investor Michael Burry, known for shorting the 2008 housing bubble, reduced his equity portfolio in the second quarter in anticipation of a sharp stock market decline.
Despite short-term uncertainties, corporate investors, usually focused on long-term strategies, have increased their investments in the blockchain industry, including the crypto space. According to a blog by Blockdata on August 17, the top 40 publicly traded companies invested around $6 billion in blockchain startups between September 2021 and June 2022, surpassing the $1.9 billion invested between January 2021 and September 2021.
What are the key downside levels indicating a potential faltering recovery? Let’s analyze the top-10 cryptocurrencies’ charts to find out.
Bitcoin (BTC) / USDT
Bitcoin bulls attempted to breach the overhead resistance at $24,668 on August 17, but faced aggressive defense from bears. The price retraced to the 20-day exponential moving average (EMA) at $23,496, likely to attract strong buying pressure.
The 20-day EMA has flattened, and the relative strength index (RSI) near the midpoint indicates a balance between supply and demand. A sustained move below the 20-day EMA could shift the balance in favor of bears, potentially leading to a drop to the 50-day SMA at $22,160.
On the other hand, a rebound from the current level breaking above $25,200 would favor bulls. This scenario could drive BTC/USDT towards $28,000, where bears might mount a defense.
Ethereum (ETH) / USDT
Ethereum bounced from $1,853 on August 16 and attempted to surpass $2,000 on August 17. However, the long wick on the candlestick suggests possible profit-taking by traders on rallies.
Bears may target the price towards the strong support zone between the 20-day EMA at $1,772 and $1,700. Bulls need to defend this zone to sustain the uptrend. A bounce from this support could lead ETH/USDT to retest $2,030. A break above this level could pave the way for a rally towards the downtrend line.
Conversely, a breach of the $1,700 support might push the pair down to the 50-day SMA at $1,492, potentially keeping it range-bound for a while.
Binance Coin (BNB) / USDT
Buyers attempted to push Binance Coin higher on August 17, but faced resistance from bears, leading the price to the 20-day EMA at $307.
A drop below the 20-day EMA could send BNB/USDT towards the 50-day SMA at $270, likely attracting buying interest. Conversely, a strong rebound from the current level would indicate ongoing positive sentiment, with the pair aiming to break the overhead resistance zone at $338-$350. Successful clearance of this zone could trigger a rally towards $383 and then $413.
Ripple (XRP) / USDT
Ripple bulls defended the moving averages zone and aimed to breach the overhead resistance at $0.39 on August 17. However, bears persist in defending this level, as indicated by the long wick on the candlestick.
A close below the 20-day EMA at $0.37 might lead XRP/USDT to the 50-day SMA at $0.35. Bulls need to defend this level to avoid continued range-bound action between $0.30 and $0.39. Conversely, a bounce from the moving averages could prompt bulls to attempt a break past $0.39, potentially propelling the pair towards $0.48 and $0.54.
Cardano (ADA) / USDT
Cardano bounced from the breakout level of $0.55 on August 16, but bears presented a strong challenge as seen from the Aug. 17 candlestick.
A breach and close below the 20-day EMA at $0.53 may signal a shift in short-term advantage towards sellers, potentially driving ADA/USDT to the 50-day SMA at $0.49. On the other hand, a rebound from the 20-day EMA would indicate robust demand at lower levels. Bulls might aim to push the pair above $0.60, signaling a possible rally towards $0.63 and then $0.70.
Solana (SOL) / USDT
Solana attempted a rebound off the 20-day EMA at $42, but faced selling pressure as indicated by the long wick on the Aug. 17 candlestick.
Bears may aim to push the price below the support line, potentially invalidating the bullish ascending triangle pattern. A decline to $37.50 and later $34.50 could follow if this scenario plays out. Alternatively, a rebound from the moving averages would suggest bullish accumulation on dips, with buyers aiming to surpass the $48 overhead resistance towards a rally to $60.
Dogecoin (DOGE) / USDT
Dogecoin dropped below the breakout level of $0.08 on August 15 but bulls quickly bought the dip. Resistance at $0.09 may slow the recovery, but a failure to dip below $0.08 could signal a potential rally towards $0.10. The 20-day EMA starting to turn up and RSI in positive territory indicate bullish strength. To negate this view, bears must sustain the price below the triangle trendline.
Polkadot (DOT) / USDT
Polkadot bulls defended the 20-day EMA at $8.62 but faced strong resistance when trying to surpass the overhead barrier at $9 on Aug. 17.
Sustained price below the 20-day EMA might trap aggressive bulls, potentially leading to a drop to the 50-day SMA at $7.72. A move above $9 could indicate bullish buying pressure, with potential rallies towards $9.68, $10.80, and $12.44.
Shiba Inu (SHIB) / USDT
SHIB correction paused at $0.000015 on August 15, but bulls met resistance near the overhead barrier at $0.000017-$0.000018. A failure to surpass this resistance could invite bearish pressure towards the $0.000014 support. BREAKLINE Maintaining support at this level is crucial to preserving positive momentum.
A breakout above the resistance zone could propel SHIB/USDT towards $0.000022 and potentially $0.000026.
Avalanche (AVAX) / USDT
Avalanche is approaching the breakout level at $26.38, where bulls are likely to defend and attempt to establish support.
A strong bounce from $26.38 could push AVAX/USDT above the overhead resistance at $31, setting the stage for rallies towards $33 and the pattern target at $39.05. Conversely, a break below the breakout level could trap aggressive bulls, leading to declines to the 50-day SMA at $22.70 and the ascending triangle support line.
The views expressed are solely the author’s and do not necessarily reflect Cointelegraph’s opinions. All investments involve risk, so conduct thorough research before making decisions.
Market data provided by HitBTC exchange.
Image Source: Hi my name is Jacco / Shutterstock
