Price analysis 8/29: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, SHIB, MATIC
The United States equities markets are attempting to stabilize after the carnage on Aug. 26. On similar lines, Bitcoin (BTC) is also witnessing a see-saw battle near the psychological level of $20,000 with both the bulls and the bears vying for supremacy.
Although several analysts are bearish on Bitcoin in the near term, it has not stopped the whales from accumulating at lower levels. Data from on-chain research firm Santiment shows that the number of whale addresses holding between 100 to 10,000 Bitcoin has risen by 103 in the past 30 days.
In bear markets, rumors spread fast and could result in quick declines, but many times, the fears are unfounded. Mt. Gox creditors confirmed on Twitter that the rumor of a 137,000 Bitcoin dump spread on social media was false. The creditors said that the infrastructure needed to start the repayment was still notin place.
Could Bitcoin and major altcoins sustain the rebound? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin closed below the psychological level of $20,000 on Aug. 28 but the bears could not build upon their advantage. Buyers have pushed the price back above $20,000 on Aug. 29, which shows strong demand at lower levels.
The BTC/USDT pair could rise to the 20-day exponential moving average (EMA) ($21,620), which is an important level to keep an eye on. If bulls push the price above this resistance, it could signal that the bearish momentum is weakening. A break and close above the moving averages could open the doors for a possible rally to $25,211.
Alternatively, if the price turns down from the downtrend line or the moving averages, it will suggest that bears are selling on every minor rise. The pair could then decline to the strong support zone of $18,910 to $18,626. The bulls are expected to defend this zone with all their might because if the support cracks, the pair could drop to the June low at $17,622.
ETH/USDT
Ether (ETH) turned down from the 20-day EMA ($1,638) on Aug. 26 and broke below the neckline of the head and shoulders pattern. This completed the bearish setup, indicating that the sellers are in control.
However, the bears could not sustain the price below the neckline, indicating buying on dips. The bulls are attempting to push and sustain the price above the neckline and challenge the overhead resistance at $1,700. If they succeed, the ETH/USDT pair could rally to the psychological level of $2,000.
Conversely, if the price turns down from the current level or the moving averages, it will suggest that bears are active at higher levels. If the price turns down and breaks below the neckline, the pair could drop to the strong support at $1,280. The bulls are expected to defend this level aggressively but if they fail to do that, the pair could plunge to $1,050.
BNB/USDT
The failure of the bulls to sustain the price above the 20-day EMA ($293) on Aug. 25 attracted heavy selling. BNB turned down sharply on Aug. 26 and broke below the 50-day simple moving average (SMA) ($284).
A minor positive is that the bulls did not allow the price to sustain below the strong support at $275. The buyers are attempting to push the price above the 50-day SMA.
If they succeed, the BNB/USDT pair could rally to the 20-day EMA where the bears may pose a strong challenge. The bulls will have to push the pair above $308 to open the doors for a possible rally to $338.
Conversely, if the price turns down from the moving average and breaks below $275, it will complete a head and shoulders pattern. This negative setup could start a decline to $240 and then to the target objective at $212.
XRP/USDT
The bulls failed to sustain Ripple (XRP) above the moving averages on Aug. 26, indicating that the breakout may have been a bull trap. That intensified selling and the bears are attempting to pull the price to the strong support at $0.30.
Buyers are likely to defend the $0.30 support aggressively because if the support cracks, the XRP/USDT pair could start the next leg of the downtrend. The pair could then decline to $0.25 and later to the pattern target of $0.21.
Alternatively, if the price rebounds off $0.30 with strength, it will indicate strong demand at lower levels. The bulls will then again attempt to push the price above the moving averages. If they can pull it off, the pair could rally to the strong overhead resistance at $0.39.
ADA/USDT
Cardano (ADA) continues to gradually slide toward strong support at $0.40. The bulls have bought the dips to this level on two previous occasions; hence, it may again attract buyers.
The bulls are attempting to push the price above the moving averages. If they succeed, the ADA/USDT pair could rally to the downtrend line and later attempt an up-move to the $0.70 to $0.74 resistance zone.
On the other hand, if the price once again turns down from the moving averages, it will suggest a lack of demand at higher levels. The bears will then try to sink the price below $0.40 and resume the downtrend.
SOL/USDT
Solana (SOL) broke and closed below the strong support at $32 on Aug. 26, indicating that the range has broken down in favor of the bears.
The bulls are attempting to push the price back above the breakdown level of $32. If they succeed, the SOL/USDT pair could rise to the 20-day EMA ($36). This is an important level to keep an eye on because a break and close above it could increase the possibility of the pair remaining inside the $32 to $48 range for a few more days.
Conversely, if the price turns down from the current level or the 20-day EMA, it will suggest that bears are in control. The pair could then decline to the vital support at $26. A break and close below this level could indicate the start of the next leg of the downtrend.
DOGE/USDT
Dogecoin (DOGE) broke and closed below the trendline of the ascending triangle pattern on Aug. 26, which invalidated the bullish setup. The price has dropped to the immediate support at $0.06.
If the price rebounds off the current level, it will suggest that bulls may be accumulating on dips. The buyers will then again try to push the price above the moving averages. If they manage to do that, the DOGE/USDT pair could rally to $0.08. A break and close above this level will be the first sign that the bears may be losing their grip.
Alternatively, if the price breaks below $0.06, the selling could intensify and the pair could drop to the critical support at $0.05. The bulls are likely to defend this support with all their might because if the level cracks, the pair could resume its downtrend.
Related: These 3 altcoins have completely ignored the bear market in the last 90 days
DOT/USDT
Polkadot (DOT) remains stuck inside the large range between $10 and $6. The downsloping 20-day EMA ($7.68) and the RSI in the negative territory indicate an advantage to bears.
The bulls are attempting to push the price above the moving averages. If they manage to do that, the DOT/USDT pair could rally toward $9.17 and then to the overhead resistance at $10.
On the contrary, if the price once again turns down from the moving averages, it will suggest that bears are selling on rallies. The pair could then decline to the crucial support at $6. The bears will have to sink and sustain the price below this level to suggest the start of the next leg of the downtrend.
SHIB/USDT
Shiba Inu (SHIB) broke and closed below the immediate support at $0.000012 on Aug. 28 but the bears could not build upon the advantage. This suggests that bulls are buying on dips.
If buyers sustain the price above the 50-day SMA ($0.000012), the SHIB/USDT pair could attempt a rally to the overhead resistance at $0.000014. If the price turns down from this level, the SHIB/USDT pair could remain stuck between $0.000012 and $0.000014 for some time.
If bulls thrust and sustain the price above $0.000014, the pair could rally to the stiff resistance of $0.000018. This bullish view will invalidate in the near term if the price turns down and plummets below the Aug. 28 intraday low.
MATIC/USDT
Polygon’s (MATIC) rebound met with stiff resistance at the 20-day EMA ($0.83) on Aug. 28, indicating that bears are defending the level aggressively.
The MATIC/USDT pair bounced off the strong support at $0.75 on Aug. 29, indicating that the bulls are buying the dips to the support of the range. The pair is stuck between the 20-day EMA and $0.75 but this tight-range trading is unlikely to continue for long.
If buyers drive the price above the moving averages, the pair could rally to the overhead resistance at $1.05 where the bears may again pose a strong challenge. Alternatively, if the price plummets below $0.75, the pair could decline to the strong support at $0.63.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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