Unilateral Bitcoin Price Could Cause Breakout in ETH, XRP, LDO and RNDR

Altcoin prices fell after the United States Securities and Exchange Commission (SEC) announced lawsuits against Binance and Coinbase at the beginning of the week. In addition to taking action against the two largest crypto exchanges, investors seem to be nervous as the SEC labels 23 cryptocurrencies as securities in two lawsuits. This brings the total number of cryptocurrencies termed as securities by the SEC to 67.

Amidst the turmoil, one minor positive is that bitcoin (BTC) and ether (ETH) have performed relatively well. This shows that institutional investors are not panicking and dumping their positions. Due to their outperformance, bitcoin’s Effect Year-to-date is up 47.6% and Ether is up 20%.

The uncertainty in the near term is likely to keep many investors on the sidelines. During this period, cryptocurrencies that are generally held perform well when there is an improvement in market sentiment.

Let’s take a look at the top-5 cryptocurrencies that are trying to stay above their respective support levels and attempt to start a rebound. What are the important support and resistance levels to watch?

bitcoin price analysis

Bitcoin once again fell below the crucial $25,250 support level on June 10, indicating that the bears are keeping the pressure on. Repeated retesting of a support level within short intervals weakens it.

The descending moving averages and the relative strength index (RSI) are in the negative zone to indicate that the bears are in control. If there is a breakdown of the support area between $25,250 and $23,896, the BTC/USDT pair could witness panic selling. The pair could then decline to the psychologically important level of $20,000. Buyers are expected to defend this level with all their might.

If the bulls want to halt the sharp decline, they will need to quickly propel the price above the 20-day exponential moving average ($26,721). Such a move would indicate strong demand at lower levels. The pair is likely to rise first towards the 50-day simple moving average ($27,464) and then towards the resistance line of the channel. Buyers would need to kick the price above this level to signal the resumption of the upward move.

The 4-hours chart is showing a recovery from the $25,250 support, facing sales at the 20-EMA. This shows that the bears are not giving any chance to the bulls to make a comeback. The bears need to sink the price below $25,250 to further consolidate their position.

Conversely, if the price moves up and breaks above the 20-EMA, the pair may rally to the 50-SMA. If this level breaks out, the pair is likely to move towards $27,400.

ether price analysis

Ether has been in a corrective phase for the past several days. The bears dragged the price below the 50% Fibonacci retracement level of $1,755 on June 10, but the bulls halted the decline as they defended the strong support at $1,700.

The bulls will attempt to start a relief rally which could reach the 20-day EMA ($1,835). This is an important level to watch as a break and close above it would suggest that the ETH/USDT pair could remain range-bound between $1,700 and $2,000 for a while.

Conversely, the sellers will attempt to halt the recovery and drag the price below the $1,700 support. If they can accomplish this, the pair can begin the next phase of improvement. There is a minor support at $1,600 but if it fails to hold, the pair could decline further towards $1,352.

The 4-hours chart shows that the bulls previously defended the $1,700 level tightly and may attempt to do so again. The buyers will have to overcome the hurdle of the moving averages to start a sustained recovery that could take the price towards $1,920.

Conversely, if the price turns down from the current levels or the moving averages, the bears will again attempt to sink the pair below $1,700. If they succeed, selling could accelerate and the pair could retest $1,352.

xrp price analysis

XRP (XRP) broke below overhead resistance near $0.56 on June 10 and declined below the 20-day EMA ($0.50).

However, a positive sign is that buyers immediately bought the dip of the 50-day SMA ($0.47), as seen from the long tail on the day’s candlestick. The 20-day EMA is an important level for the bulls because if they hold above it, the XRP/USDT pair could again move closer to $0.56.

Instead, if the price declines and breaks below the 20-day EMA, it would suggest that the higher levels are attracting sellers. The pair could then decline towards the 50-day SMA. A break and close below this level could start a deeper decline towards $0.41.

The 4-hours chart shows that the recovery is facing selloff near the 20-EMA. This suggests that short-term sentiment remains negative and bears are selling on rallies. If the price breaks below the current levels, the bears will attempt to sink the pair below $0.47. If they succeed in doing so, the pair could drop to $0.44.

On the other hand, if the buyers hold the price above the moving averages, it will clear the way for a potential rally towards $0.55.

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Lido DAO Price Analysis

Lido The DAO (LDO) has been falling inside a descending channel pattern for the past few days, indicating that the bears are in control.

The LDO/USDT pair declined sharply on June 10 but the long tail on the day’s candlestick shows that the bulls are aggressively buying dips to the support at $1.57. The buyers will try to initiate a recovery which may reach the moving averages.

However, sellers are likely to have other plans. They will not want to give any discount to the buyers and will try to reduce the price to $1.57. If this level breaks, the pair could start a decline towards the support line of the channel near $1.

Extremely oversold levels on the RSI suggest that a relief rally may be imminent. The buyers tried to initiate a recovery but the bears did not allow the price to rise above $1.90. Hence, it becomes a significant hurdle for the buyers to initiate the recovery.

The pair could then rise towards the 20-EMA where the bulls could face strong selling by the bears. The buyers need to clear this hurdle to start a strong rally. This positive outlook will be invalidated in the near term if the price drops below $1.65.

render token value analysis

Render token (RNDR) saw a sharp correction on June 10 and declined below the uptrend line but there is a slight positive as the bulls are trying to push the price above the breakdown level.

If the price sustains above the uptrend line, it would suggest that the recent breakdown could be a bear trap. The RNDR/USDT pair could then climb towards the 20-day EMA ($2.31) where it is likely to face its real test.

Alternatively, if the price fails to sustain above the uptrend line, it will suggest that the bears have turned the uptrend line into resistance. The pair could then extend its decline and drop to the next support near $1.60.

The 4-hours chart shows that the bulls are trying to push the price above the breakdown level, but the bears are holding their positions. The area between the uptrend line and the 20-EMA remains an important level to watch. If the price breaks above this area, the pair is likely to recover up to $2.40.

Conversely, if the price continues to decline from the current levels and breaks below $1.80, it will signal the resumption of the downtrend. The pair could then drop to $1.60 where buyers are likely to mount a strong defense.