The total cryptocurrency market capitalization has fallen below $900 billion due to the sharp decline in cryptocurrencies. CoinGoLive reports that 72 of the 100 top tokens have fallen more than 90% since their highs. Comparatively, the top-10 coins outperformed the rest during the fall, dropping an average 79% from their high.
Bitcoin (BTC), which is now down over 70% from its peak, has been struggling to halt the slide. Jurrien Timmer is Fidelity’s director of global macro. He pointed out that Bitcoin might be cheaper than it appears based on the price-to network ratio. This ratio is comparable to the price/earnings ratio used to value stocks in the equities markets.
Everyday cryptocurrency market performance. Source: Coin360
In an interview with Fortune, Mark Cuban, a billionaire investor, stated that projects without viable business prospects would disappear as bear markets have a cleansing impact on the market. He said that the market downturn will likely not stop innovation in crypto.
Are Bitcoin and other altcoins able to maintain their support levels? Let’s look at the charts for the top 10 cryptocurrencies to see how they compare.
Although the bulls want to keep Bitcoin above $20,000 psychological support, they face strong resistance at $23,362. This indicates that the bears are not giving up on Bitcoin and they will continue to sell rallies.
Daily chart of BTC/USDT Source: TradingView
The greater chance of a break below $20,000 the longer you spend near $20,000 for. The BTC/USDT pair may experience panic selling if bears drop below $20,000 This could push the price up to $17,500, and then to $16,000.
One ray of light for buyers is the fact that the relative strength indicator (RSI), has dipped to deeply oversold levels. In the short-term, this suggests that a relief rally may be possible. Bulls could drive the price higher than $23,362, which would allow the pair to rally to the 20-day exponentially moving average (EMA), ($26,574).
The bearish grip on Ether (ETH), is strong. As seen by the candlestick’s long tail, the bulls bought the dip down to $1,014 in June 15. The bears brought the price down to $1,100, but the recovery was brief.
Daily chart of ETH/USDT Source: TradingView
The selling pressure could increase if bears lower the price below $1,000. If this happens, the ETH/USDT exchange rate could plunge to $900. Although bears have the advantage of the downward-sloping moving averages, the RSI is deeply oversold and suggests that a rally could be in the offing.
To sustain a recovery, the bulls must push and maintain the price above $1.268. The pair could reach the 20-day EMA ($1,547), where bears might mount a strong resistance.
Since June 13, BNB has been consolidating at $211, the critical support. Although the bulls began a recovery on June 15, it stalled at $237 on June 16.
Daily chart BNB/USDT TradingView
The BNB/USDT pair may begin the next leg if the price falls below the $211-$198 support zone. The pair could slide to $186, then plummet towards the strong support of $150.
The buyers will attempt to push the pair higher than $237 if the price recovers from the $211 support. The pair may rally to the $205 EMA ($265) if they succeed. This level is important to monitor because a break or close above it could indicate that the pair has bottomed.
Cardano (ADA), bounced off $0.44 June 14, and bulls pushed it to the 20-day EMA ($0.54) June 15. This level was aggressively defended by the bears and the price fell on June 16.
Daily chart ADA/USDT Source: TradingView
Although the price is currently stuck between $0.44 and the 20-day EMA, this tight trading range is unlikely to last long. The ADA/USDT price could rise to the SMA ($0.59) if buyers push it above the 20 day EMA. Breaking above this level could lead to a rally to the overhead zone of $0.69- $0.74.
If the price falls below $0.44 and the price turns down, it could indicate that the bears are back in play. The next leg of the downtrend could begin with a break and close below $0.40.
Ripple (XRP), bounced from $0.29 on June 14, and reached $0.35 June 15, which proved to be a stiff resistance. The buyers are trying to push the price higher than $0.35.
Daily chart of XRP/USDT Source: TradingView
If they can do so, the XRP/USDT pairing could rally to $0.38. This level is important to monitor as a break or close above it could open the way for a rally to the 50 day SMA ($0.44). Positive divergence in the RSI suggests that bears are losing their grip.
Contrary to the assumption, a fall in the price below $0.29 will indicate a resumption or continuation of the downtrend. The $0.24 level is the next support.
Solana (SOL), attempted a recovery on June 15. However, it hit a barrier at $35. Although the price fell on June 16, the bulls still attempt to maintain the $30 level.
Daily chart of SOL/USDT Source: TradingView
Buyers will attempt to move the price higher than the overhead zone of $35 and the 20 day EMA ($37). The SOL/USDT pair may rally to the 50 day SMA ($52) if they succeed.
If the overhead zone is not reached, the bears will continue to sell at resistance levels. The bears will attempt to bring the price down below $26 and restart the downtrend. Next support is $22 and then $20.
Dogecoin (DOGE), is consolidating in an downtrend. Although the psychological level of $0.05 was defended by the buyers, they attempted to rally higher on June 15, but were unsuccessful. This indicates that bears are still selling on rallies
Daily chart of DOGE/USDT Source: TradingView
The buyers have attempted to stop the drop of $0.06 per month on June 17. The DOGE/USDT pair may resume recovery if they succeed.
Breaking above the June 15 intraday peak could open the way for a rally to the 20 day EMA ($0.07). Bulls could overcome this barrier and the DOGE/USDT pair could rally towards the 50-day SMA ($0.09).
Contrary to the assumption, the first leg of the downtrend will begin if the price drops below $0.05. This could lead to a decline of the pair to $0.04.
Related: Bitcoin whale support line up as trader declares $14K’most bearishly’ BTC price target
The Polkadot, (DOT), rallied strongly on June 15, and reached the 20 day EMA ($8.62), but the bulls couldn’t overcome this resistance. This shows that bears are active higher up.
Daily chart of DOT/USDT Source: TradingView
On June 16, the price fell sharply and is now near the critical support zone of $7.30 to $6.36. The buyers will be expected to protect this area aggressively as a failure to do so may reopen the downtrend towards $4.23.
It will indicate accumulation at lower levels if the price bounces off the support zone. The buyers will attempt to push the price higher than the 20-day EMA. The DOT/USDT pair may rally to the $50 SMA ($10.54) if they succeed.
UNUS SED LEO continues to trade within the descending channel. Although the bears managed to pull the price below the moving medians on June 15, they failed to extend their decline to the support line.
Daily chart LEO/USD TradingView
Buyers are trying to get the price back towards the moving averages. The possibility of a retest at the channel’s support line could increase if the price falls below this resistance. Selling could be intensified if the price breaks and closes below this level.
If buyers push the price higher than the moving averages, then the LEO/USD pair may rise to the resistance level. The bears must defend this level as a break or close above it could signal a new up-move towards $6.25.
Avalanche (AVAX), which is currently consolidating in a downtrend, has bulls trying to defend $14.50 as support. Although the buyers attempted to push the price towards the $21.35 breakdown level on June 16, the higher levels continue to draw in selling.
Daily chart of AVAX/USDT Source: TradingView
It could indicate the beginning of the next downtrend if the price drops below $14.50. This could lead to a decline in the AVAX/USDT pairing to $13.
The opposite is true. If bulls can successfully defend the $14.50 support the pair may make another attempt at $21.35. This level is important to monitor because bears could try to turn it into resistance, pulling the pair down to $14.50.
To signal a possible trend change, buyers will need to push the price higher than the 20-day EMA ($21.94).
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.