Bitcoin (BTC) is leading the drop in the cryptocurrency markets, worsened by ongoing problems at Silvergate Bank. The cryptocurrency-focused bank recently announced delays in filing its annual report and raised concerns about its operations for the next year. In response, some cryptocurrency companies have scaled back or ended their partnerships with the bank.
The uncertainty surrounding Silvergate Bank and its potential impact on the cryptocurrency sector may have triggered a rapid response. However, if the issues remain contained, the downside could be limited.
Another positive sign for the cryptocurrency markets is the attempt at recovery in the U.S. equities markets. This indicates that traders are willing to take on more risk at lower levels, which could help limit the downside for Bitcoin and certain altcoins.
Exploring key support levels that could spur a recovery in Bitcoin and major altcoins, let’s analyze the top-10 cryptocurrencies through their charts.
BTC/USDT
Failing to surpass the $24,000 mark led to profit-taking among traders, with selling intensifying on March 3, pushing the price below the immediate support at $22,800.
Although the 20-day exponential moving average ($23,332) remains flat, the relative strength index (RSI) dropping below 44 indicates a bearish shift in short-term momentum. The next critical support to monitor is at $21,480.
Buyers are expected to defend this level strongly since a breach and close below it could pave the way for a retest of the psychologically significant $20,000 level.
Alternatively, a rebound from $21,480 could prompt bulls to challenge the $22,800 hurdle. A successful breach there would suggest the BTC/USDT pair could consolidate between $21,480 and $25,250 for some time.
ETH/USDT
After being rejected at the $1,680 resistance on March 2, Ether (ETH) witnessed intense selling on March 3, breaking below the 50-day SMA ($1,607). The next probable drop could test the critical support at $1,461, where buyers may step in.
A robust rebound from $1,461 could signal a range-bound movement for some days. Bullish momentum is expected if the price surpasses $1,680 or a deeper correction could lead to a slide to $1,352.
BNB/USDT
The symmetrical triangle pattern in BNB (BNB) broke downward on March 3, indicating bearish dominance. The BNB/USDT pair may slide towards strong support at $280, which could mark the completion of a bearish head and shoulders pattern, with a downside target of $245.
For a possible reversal, bulls need to defend the $280 level. If successful, the pair may trade within the $280-$318 range for a while, turning bullish above $338.
XRP/USDT
XRP (XRP) tested the 20-day EMA ($0.38) on March 1 but failed to surpass it, signaling ongoing negative sentiment and selling pressure on rallies.
A drop below the substantial $0.36 support on March 3 could extend the decline towards the support line of the descending channel pattern.
To reclaim control, bulls must push the price above the channel’s resistance line, potentially paving the way for an upward move towards $0.43.
ADA/USDT
Cardano (ADA) attempted a rebound from $0.34 on March 1, but bears pushed the price down below support on March 3. The long tail on the candlestick hints at possible support at $0.32, a level buyers may defend.
To strengthen their position, buyers must push the price above $0.34, aiming for the 20-day EMA ($0.37). Failure to do so could lead to a deeper slide towards $0.27.
DOGE/USDT
Dogecoin (DOGE) broke below the $0.08 support on March 3, completing a bearish descending triangle pattern. The DOGE/USDT pair may target the support near $0.07, with buyers expected to defend it.
A rebound from $0.07 could lead to a battle at $0.08. Failing to surpass this level may result in a drop towards $0.06, while a successful breach could propel the pair towards $0.10.
MATIC/USDT
Polygon (MATIC) climbed from the 50-day SMA ($1.18) on March 1 but faced resistance at the 20-day EMA ($1.27). Selling pressure on March 3 pushed the price below the 50-day SMA, potentially reaching solid support at $1.05.
A recovery above the 50-day SMA could signal buying interest at lower levels. Bulls would aim to breach $1.30 to regain control.
SOL/USDT
Solana (SOL) struggled to move above the 20-day EMA ($22.77) on March 1, leading to further selling pressure. The RSI slipped, and the SOL/USDT pair might target the crucial support at $19.68, attracting buyers.
A robust bounce from $19.68 could facilitate a push above the 20-day EMA. Conversely, failing to hold at $19.68 could trigger aggressive selling towards $15.
DOT/USDT
Polkadot (DOT) breached the 50-day SMA ($6.47) on March 1 but faced resistance at the 20-day EMA ($6.60). An inability to surpass this level led to a drop below the 50-day SMA, with potential support at $5.50.
Defending the $5.50 support is crucial, with the upside resistance at the 20-day EMA indicating a potential reduction in selling pressure.
LTC/USDT
Litecoin (LTC) rallied from the 50-day SMA ($93) on Feb. 28 but the failed attempt at the $98 resistance triggered a downturn. The drop below moving averages on March 3 could lead to a decline toward $85 support.
Watch for resistance at moving averages and $98 levels for a possible bullish comeback.
The views expressed in this article belong solely to the authors and not Cointelegraph.
This content does not provide investment advice. Readers are advised to conduct their research before making investment decisions.
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