The US stock market is trying to recover after weeks of relentless selling. In a similar vein, the on-chain monitoring resource Material Indicators expects the crypto market to recover, but expects Bitcoin (BTC) to spend some time before a “real breakout”.
The 7-day moving average of on-chain trading volume tracked by Glassnode hit a nine-month low on May 23rd. This suggests a decline in trader engagement due to Bitcoin’s sluggish price action in 2022.
Although there are signs of a short-term recovery, a lasting recovery may be difficult as the macro-scale remains challenging. International Monetary Fund (IMF) Executive Director Kristalina Georgieva said in her blog post that the world economy witnessing “The biggest test since World War II”
Can Bitcoin and Altcoins overcome the immediate level of resistance and start a relief rally? Let’s study the top 10 cryptocurrency charts to find out.
Bitcoin maintained the $28,630 support on May 20, indicating that the bulls are buying at the lower level. Buyers pushed the price above the downtrend line, the first sign of a recovery.
If the buyer maintains the price above the downtrend line, the BTC/USDT pair could advance towards the 20-day exponential moving average (EMA) ($31,758). The bearish will likely defend the 20-day EMA aggressively. This is because a break above that and close could push further towards the 61.8% Fibonacci retracement level of $34,823.
Alternatively, if the price declines from its current level or the 20-day EMA, it indicates that sentiment is still negative and the trader is selling in the rally. The bearish should push the price down below $28,630 to get a path to retesting the critical support at $26,700.
Ether (ETH) rebounded from its uptrend line on May 21, indicating that the bulls are buying the downtrend to this level. Now buyers will attempt to push the price towards indirect resistance of $2,159, which could pose a strong challenge for the bears.
If the price declines from overhead resistance, it may move towards an uptrend line. This is an important level to keep an eye on in the short term. If the price rebounds from the uptrend line, it is more likely to break through the $2,159 mark. In this case, the ETH/USDT pair could try to rally up to $2,500.
On the other hand, if the price declines from its current level or indirect resistance and falls below the uptrend line, it suggests that it could stay between $2,159 and $1,700 for several days.
The bulls pushed BNB above the 20-day EMA ($324), the first sign that the downtrend may be over.
If the buyer maintains the price above the 20-day EMA, the BNB/USDT pair could move up to $350 and then later on to the 50-day Simple Moving Average (SMA) ($374). Bears can re-attempt to move up in this area. If the price declines in this area but rebounds from the 20-day EMA, it is more likely to break above the 50-day SMA.
If the price drops below $320, this bullish view is negated in the short term. It indicates that the bear sells at a higher level. It can then gradually drop down to $286.
Ripple (XRP) is attempting to recover after the bulls successfully defended their immediate support at $0.38 on May 19th. Now the buyer wants to push the price towards the 20-day EMA ($0.47).
A falling moving average and a negative RSI indicate that the bear has the upper hand. Sellers are actively defending the 20-day EMA. If that happens, the XRP/USDT pair may move lower from overhead resistance and move towards the strong support of $0.38.
Conversely, if a bull pushes the price above the 20-day EMA, it could suggest a change in the short-term trend. The pair can then move up to the $0.50 to $0.55 overhead area, which could act as a major hurdle.
On the downside, the bear needs to move below $0.38 and hold for a retest of the May 12 intraday low of $0.33.
The bulls have successfully defended their psychological level at $0.50 over the past few days, indicating a lower level of demand. Buyers are now looking to push Cardano (ADA) above the 20-day EMA ($0.60).
If successful, the ADA/USDT pair could attempt to rally to the $0.74 collapse level. Bears are likely to pose a difficult challenge at this level. If the bulls block a subsequent decline in the 20-day EMA, it will signal a shift in sentiment towards buys as they move down from sells in a rally.
Contrary to this assumption, if the price declines from the 20-day EMA, it indicates that the bear market continues to sell in the rally. The bearish then lowers the price below $0.50 and retests the important support at $0.40.
The bulls bought the bearish up to $47 on May 20 and are attempting to push Solana (SOL) towards the 20-day EMA ($61). Bears are expected to defend this level aggressively.
If the price declines from the 20-day EMA, the SOL/USDT pair could drop to $47, where the bulls will try to block the decline. When that happens, the pair can trade between $47 and $60 for a few days.
Breaks and closes above the 20-day EMA will be the first signs that the bulls are back in the game. The pair can then go up to a breakdown level of $75. Alternatively, if the price declines and falls below $47, the pair could slide towards the strong support of $37.
Dogecoin (DOGE) continues its downward trend. The bulls have defended the $0.08 support for the past few days and are attempting to push the price towards the indirect resistance of $0.10.
If the price declines from $0.10, it means the bear is trying to turn this level into resistance. If successful, the DOGE/USDT pair could continue its range-limiting action for several days.
Buyers should see the price move above $0.10, suggesting that the downtrend could be weakened. The pair can then move up to $0.12.
Alternatively, if the price declines from its current level and falls below $0.08, the pair could retest the significant support at $0.06.
Relevant: Monero enters ‘overbought’ risk zone after XMR price rises 75% in two weeks.
The bulls are attempting to push and hold Polkadot (DOT) above the $10.37 overhead resistance. If successful, the price could push towards the 20-day EMA ($11.57).
Buyers should push the price above the 20-day EMA to indicate a potential change in the short-term trend. The DOT/USDT pair can then rally into the overhead resistance zone between $14 and $16, where the bear can make a strong defense.
Contrary to this assumption, if the price declines from the 20-day EMA, it suggests that the trend is still negative and the trader is selling in the rally. The bearish then pulls below $9.22 and retests the important support at $7.30.
Avalanche (AVAX) rebounded from the pennant’s support, indicating that the bulls are aggressively defending this level. Buyers will now try to push the price above the pennant.
If they can do that, the AVAX/USDT pair could push as high as the 20-day EMA ($39). This is an important level to watch out for as the bears are expected to defend it vigorously.
If the price declines from the 20-day EMA but does not re-enter the pennant, it suggests a possible change in trend. The buyer then attempts to clear the overhead hurdle from the 20-day EMA and push the pair towards $51.
Conversely, if the price declines from its current level or 20-day EMA and falls below the support line, it indicates that the bear is operating at higher levels. Then the pair can slide to $23.
Shiba Inu (SHIB) is attempting to move above the immediate resistance of $0.000013, but the long wick on the day’s candlestick suggests bears are trying to hamper the rally.
If the price declines from its current level, the SHIB/USDT pair could spend more time in the $0.000010 to $0.000014 range. The next trend move can begin after the price breaks above or below the range.
If buyers push the price above the 20-day EMA ($0.000014), the pair could try to rally to $0.000017. This level can again act as a strong resistance.
Alternatively, if the price declines and falls below $0.000010, the pair may move towards $0.000009. This is an important level to watch out for as the next stop could be $0.000005 if broken.
The views and opinions expressed herein are solely those of the authors and do not necessarily reflect those of Cointelegraph. All investments and trading are subject to risk. You should do your own research when making a decision.
Market data is provided by: Hit BTC exchange.