After weeks of selling, the United States equity markets are trying to recover. Material Indicators, an on-chain monitoring resource, expects that the crypto market will recover. However, they anticipate Bitcoin (BTC), to spend some time in a range prior to “a real breakout.”
On May 23, the seven-day moving average for on-chain transaction volumes tracked by Glassnode reached a nine-month low. This indicates that traders have been less active due to Bitcoin’s lackluster price action for 2022.
Everyday cryptocurrency market performance. Source: Coin360
Although there are signs of a temporary recovery, sustained recovery may prove difficult due to the challenging macro environment. Kristalina Georgieva, International Monetary Fund managing Director, wrote in a blog that the global economy is facing its “biggest challenge since the Second World War.”
Can Bitcoin and altcoins surpass their resistance and launch a relief rally. Let’s look at the charts of the top 10 cryptocurrencies to see if we can find out.
Bitcoin held the $28,630 support level on May 20, which indicates that bulls are purchasing at lower levels. The first sign of a recovery is when the price has risen above the downtrend.
Daily chart of BTC/USDT Source: TradingView
The BTC/USDT pair can rally to the $20,758 exponential moving average (EMA), if buyers maintain the price above its downtrend line. Because a break or close above the 20-day EMA could open the way for a rally to the 61.8% Fibonacci retracement at $34,823, the bears will likely defend it aggressively.
If the price falls below the 20-day EMA or current level, it will indicate that traders are selling rallies and the sentiment is still negative. To clear the way for a possible retest at $26,700, the bears must lower the price to $28,630.
Ether (ETH), bounced off of the uptrend line May 21. This indicates that bulls are purchasing dips below this level. The buyers will attempt to push the price above $2,159 overhead resistance where bears could pose a challenge.
Daily chart of ETH/USDT Source: TradingView
The overhead resistance could be overcome and the price may fall to the uptrend line. This is a crucial level to watch in the near term. The chances of the price breaking above $2,159 could increase if the price bounces off the uptrend line. The ETH/USDT pairing could rally to $2,500 if that happens.
However, if the price moves below the overhead resistance or current level and falls below the uptrend line it will indicate that the pair could remain between $2,159 to $1,700 for a few more days.
BNB has risen above the 20-day EMA (324), which is the first sign the downtrend might be over.
Daily chart BNB/USDT TradingView
The BNB/USDT pair can rally to $350 if buyers maintain the price above the 20 day EMA. Later, it could reach the 50-day simple movement average (SMA), ($374). This zone may see bears trying to stop the up-move. The possibility of a breakout above the 50 day SMA will increase if the price falls from this zone, but bounces off the 20-day EMA.
If the price falls below $320, this bullish outlook will be invalidated. This would signal selling by bears at higher levels. This could lead to the pair gradually falling to $286.
After the bulls had successfully defended $0.38 as the immediate support on May 19, Ripple (XRP), is trying to recover. Now, the buyers will attempt to push the price up to the 20-day EMA ($0.47).
Daily chart of XRP/USDT Source: TradingView
Bears are the dominant force, as evidenced by the RSI in negative territory and moving averages that are downsloping. Sellers will be defending the 20-day EMA vigorously. If this happens, the XRP/USDT pairing could fall from the overhead resistance to reach $0.38.
If bulls push the price higher than the 20-day EMA, this could indicate a change in the short term trend. This could lead to a significant obstacle in the short-term, as the pair could rise to $0.55 and $0.50 respectively.
To open up the possibility of a retest at $0.33, the bears must sink and maintain the price below $0.38.
In the last few days, the bulls have successfully maintained $0.50 psychological level. This indicates that there is demand for lower levels. Cardano (ADA), which is currently at $0.60, will be pushed by buyers.
Daily chart ADA/USDT Source: TradingView
The ADA/USDT pair may attempt a rally to $0.74 if they succeed. At this level, the bears will be a formidable challenge. Bulls can stop the decline at the 20 day EMA. This will signal a shift in sentiment from buying on rallies to selling on dips.
Contrary to the assumption, if the price falls below the 20-day EMA it will mean that bears are selling on rallies. The bears will attempt to lower the price below $0.50, and then retest $0.40 as the critical support.
Bulls bought the dip to $47 May 20 and are trying to push Solana, (SOL), towards the 20-day EMA ($61). This level is expected to be defended aggressively by the bears.
Daily chart of SOL/USDT Source: TradingView
The SOL/USDT price could fall to $47 if the price drops below the 20-day EMA. This is where bulls will try to halt the decline. The pair could trade between $47-60 for a few more days if that happens.
The bulls will return to the market if they can break the 20-day EMA and close above it. The pair could rally to $75, which would be the break-even point. The pair could also slide to $37 if the price falls below $47.
Dogecoin (DOGE), is in a downtrend and consolidating. In the last few days, the bulls have defended $0.08 support and are trying to push the price up to $0.10 overhead resistance.
Daily chart of DOGE/USDT Source: TradingView
If the price drops below $0.10, this will indicate that bears are trying turn this level into resistance. The DOGE/USDT pair may continue its range-bound action for several more days if they succeed.
To indicate that the downtrend is weakening, the buyers will need to push the price higher than $0.10. The price could rally to $0.12.
Alternativly, if the price falls below $0.08 and the current level is broken, the pair may retest critical support at $0.06.
Related: Monero moves into a ‘overbought” zone following XMR’s 75% price gain in just two weeks
The bulls are trying to push and maintain Polkadot’s (DOT) price above the $10.37 overhead resistance. The price could rise to the $20.37 overhead resistance ($11.57) if they succeed.
Daily chart of DOT/USDT Source: TradingView
To indicate a possible change in the trend, the buyers will need to push the price higher than the 20-day EMA. The DOT/USDT currency pair could rally to the overhead resistance zone of $14-16 where bears might mount a strong defense.
Contrary to popular belief, if the price falls below the 20-day EMA it will indicate that the trend is still negative and that traders are buying rallies. The bears will attempt to lower the price below $9.22, and then retest $7.30 as crucial support.
Avalanche (AVAX), rebounded from the support line at the pennant. This indicates that bulls are aggressively defending this level. The buyers will attempt to push the price higher than the pennant.
Daily chart of AVAX/USDT Source: TradingView
The AVAX/USDT pair may rally to the $20-day EMA ($39) if they can do so. This level is important to monitor as bears will likely defend it vigorously.
It will indicate a possible trend change if the price falls below the 20-day EMA, but does not re-enter pennant. The buyers will attempt to overcome the overhead hurdle at 20-day EMA, pushing the pair towards $51.
Contrarily, if the price falls below the 20-day EMA or current level and then breaks below the support line it will indicate that bears are active at higher levels. This could lead to the pair sliding to $23.
Shiba Inu, (SHIB), is trying to surpass the immediate resistance at $0.000013. However, the candlestick’s long wick suggests that bears are trying to stall this rally.
Daily chart of SHIB/USDT TradingView
The SHIB/USDT pairing could stay within the range of $0.000010 to $0.000014 if the price falls from its current level. After the price moves above or below this range, the next trending move might occur.
The pair may attempt a rally of $0.000017 if buyers push the price higher than the 20-day EMA ($0.000014) This level could act as a strong resistance.
The pair could also slide to $0.000009 if the price falls below $0.000010. This is a crucial level to watch because it could crack and lead to $0.000005.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.