Bitcoin is currently struggling to stay above $27,000, and many analysts are predicting a drop to the low $20,000 levels. However, Glassnode’s lead on-chain analyst Checkmate believes that the sell-side risk ratio metric suggests that “sellers are exhausted on both sides,” indicating that significant moves are coming. The last time the sell-side risk ratio was this low was in late 2015, which started the bull run that reached $20,000 in December 2017.
A debt ceiling deal is expected to be reached, which could increase demand for Bitcoin and select altcoins if the risk-on sentiment sustains. Let’s take a closer look at the charts of the top 10 cryptocurrencies to see what crucial resistance levels need to be crossed for a sustained recovery to begin.
Bitcoin bounced off $25,871 on May 25, which is close to the strong support zone of $25,811 to $25,250. The bulls will try to push the price to the 20-day exponential moving average (EMA) of $27,173. If the price turns down from the 20-day EMA, it will signal negative sentiment as the bears are selling on rallies. The crucial level to watch on the downside is $25,250, which is expected to be defended with all the might of the bulls. Failure to defend this support level may cause the BTC/USDT pair to fall to $24,000 and eventually to $20,000.
Ether has been trading inside a falling wedge pattern for the past several days. The bulls are trying to nudge and sustain the price above the 20-day EMA ($1,829). If they succeed, the ETH/USDT pair could rise to the resistance line. A break above it will increase the possibility of a rally to $2,000. If the price turns down from the current level or the resistance line, it will suggest that bears remain active at higher levels, keeping the pair inside the wedge for a few more days.
Binance Coin descended near the horizontal support of $300 on May 26, but the long tail on the candlestick shows buying by the bulls. The 20-day EMA ($311) is the key resistance level to watch out for on the upside. Failure to turn up from this level will increase the likelihood of a break below $300, which could cause the BNB/USDT pair to slide to the support line of the descending channel pattern. If the price turns up and breaks above the 20-day EMA, it will suggest solid demand at lower levels. The pair could then attempt a rally to the resistance line. Buyers will have to clear this hurdle to signal the start of a rally to $350.
XRP sentiment has turned positive, and traders are buying the dips to the 20-day EMA. The price remains stuck between the moving averages, indicating indecision among the bulls and the bears. A break and close above the 50-day simple moving average (SMA) at $0.47 will tilt the advantage in favor of the bulls. The XRP/USDT pair could then start its northward march to $0.54 and subsequently to $0.58. If the price turns down and sustains below the 20-day EMA, it will indicate that bears are back in the game. The pair could then drop to the crucial support at $0.40.
Cardano is witnessing a tough tussle between the bulls and the bears near the uptrend line. The downsloping 20-day EMA ($0.37) and the relative strength index near 42 indicate that bears have the upper hand. Sellers will have to tug the price below $0.35 to start the next leg of the downward move to $0.30. If bulls want to seize control, they will have to shove and sustain the ADA/USDT pair above the moving averages. That will open the doors for a possible rally to the overhead resistance at $0.44.
Dogecoin has been protected by the bulls near the $0.07 support level. The bulls will have to maintain their buying pressure and kick the price above the 20-day EMA ($0.07) to prevent another assault by the bears. If the price turns down, it will suggest that bears are selling on every minor rally. The pair may slump to $0.06 if they manage to break below $0.07.
Polygon turned down from the 20-day EMA ($0.89) on May 25, but strong buying by the bulls sent the price above the 20-day EMA on May 26. If buyers can flip the 20-day EMA into support, the MATIC/USDT pair may again try to reach the downtrend line. If the price turns down and breaks below the 20-day EMA, it will suggest that supply exceeds demand. The pair could then drop to the vital support at $0.82.
Solana has managed to protect the $18.70 support level, but the lack of a strong relief rally indicates a lack of demand at higher levels. If the bears strengthen their position further by yanking the price below the $18.70 support, the SOL/USDT pair could start its southward journey toward $16. The first sign of strength will be a break and close above the downtrend line. The pair could then rise to the 50-day SMA ($21.65).
Polkadot’s shallow bounce off the strong support at $5.15 on May 25 and 26 shows a lack of aggressive buying by the bulls. If the price slips below $5.15, the DOT/USDT pair could pick up momentum and