Altcoins prices tumbled after the U.S. Securities and Exchange Commission (SEC) announced lawsuits against Binance and Coinbase earlier in the week.
In the middle of the chaos, one small silver lining is that the price of Bitcoin (BTC) and the price of Ether (ETH) have held up relatively well. This suggests that institutional investors are not panicking and dumping their positions. Due to its outperformance, bitcoin’s dominance has increased to a year-to-date high of 47.6% and Ether’s to 20%.
Short-term uncertainty is likely to keep many investors on the sidelines. During periods like these, cryptocurrencies that have held up generally tend to do well when market sentiment improves.
Then, it is crucial to see how the top 5 cryptocurrencies are trying to hold above their respective support levels and are trying to initiate a rebound
Bitcoin Price Analysis
The bitcoin price fell back to its USD 25,250 crucial support on June 10, indicating that the bearish are keeping the pressure on. Repeated testing of a support level at short intervals tends to weaken it.
Falling moving averages and the Relative Strength Index (RSI) in negative territory indicate that the bearish are in control. If the support zone between USD 25,250 and USD 23,896 falls, the BTC/USDT pair could witness panic selling.
Ether Price Analysis
Ether has been in a corrective phase over the past few days. Bears pushed the price below the 50% Fibonacci retracement level of USD 1,755 on June 10, but the bulls prevented a collapse as they defended the important support of USD 1,700.
XRP Price Analysis
XRP (XRP) broke down from the upper resistance near USD 0.56 on June 10 and fell below the 20-day EMA (USD 0.50).
However, a positive sign is that buyers quickly took advantage of the drop to the 50-day SMA (USD 0.47) as seen in the long tail of the day’s candle. The 20-day EMA is an important level for bulls because if they hold the price above it, the XRP/USDT pair can reach back near $0.56.
Lido DAO Price Analysis
Lido DAO (LDO) has been falling within a descending channel pattern for the past few days, indicating that the bearish are in control.
LDO/USDT fell sharply on June 10, but the long tail of the day’s candlestick shows that bulls are aggressively buying on dips to USD 1.57 support. Buyers will try to initiate a recovery that could reach the moving averages.
However, sellers are likely to have other plans. They will not want to give room to buyers and will try to push the price down to USD 1.57.
Render Token Price Analysis
Render Token (RNDR) corrected sharply on June 10th and plunged below the uptrend line, but a small silver lining is that the bulls are trying to push the price back above the breakout level.
If the price holds above the uptrend line, it will suggest that the recent breakout may have been a bear trap. The RNDR/USDT pair could then move up towards the 20-day EMA (USD 2.31), where it is likely to face its true test.
Conversely, if the price continues to decline from the current level and breaks below USD 1.80, this will signal the resumption of the downtrend. The pair could fall as low as USD 1.60, where buyers will defend strongly.
By Marina Meza
