Price analysis for 5/29 of various cryptocurrencies SPX, DXY, BTC, ETH, BNB, XRP, ADA, DOGE, SOL, MATIC
Bitcoin and the S&P 500 Index (SPX) had a positive week, recovering from their lows. The recovery was due to the expectation that a deal on the debt ceiling would be reached between the White House and congressional Republicans.
However, traders should not let their guard down because the price often rises on rumors and falls on the news. It remains to be seen if the bulls will build on last week’s strength or give back some of the gains once the deal passes through Congress.
A positive sign for crypto bulls is that Bitcoin’s supply is decreasing because long-term investors with conviction are refusing to sell their holdings. Glassnode’s “Hodled and Lost Coins” metric has risen to its highest level since May 2018.
What are the important resistance levels that need to be overcome for Bitcoin (BTC) and altcoins to continue moving up? Let’s analyze the charts to find out.
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S&P 500 Index price analysis
The S&P 500 Index turned up sharply from the 50-day simple moving average (SMA) of 4,100 on May 24 and rose above the 20-day exponential moving average (EMA) of 4,145 on May 25.
The bulls are trying to overcome the obstacle at 4,200. If they succeed, the index could rise to 4,300. This level may again act as strong resistance, but if the bulls do not allow the price to drop back below 4,200, the likelihood of a break above 4,300 increases. The index could then start its journey northward to the 4,500 to 4,600 zone.
If the price turns down and falls below 4,050, this positive outlook will be negated. The index could then drop to the uptrend line and subsequently to 3,800.
U.S. Dollar Index price analysis
When an asset consolidates in a range with well-defined boundaries, traders buy the dip near the support and sell close to the resistance. After bouncing off the 100.82 support, the bulls are trying to push the U.S. Dollar Index to the resistance at 106.
The upsloping 20-day EMA (103) and the relative strength index (RSI) near the overbought territory indicate that the bulls are in command in the near term. The up move could reach 106, where the bears are expected to mount a strong defense. If the price turns down from this resistance, it will suggest that the range-bound action may continue for a few more days.
On the downside, the first support is at the 20-day EMA and the next at the 50-day SMA (102). The next trending move is likely to begin on a break above 106 or on a drop below the crucial support at 100.82.
Bitcoin price analysis
The failure of the bears to push the price below the immediate support at $25,811 led to solid buying by the bulls. They pushed Bitcoin back into the symmetrical triangle pattern on May 28, but higher levels are attracting selling.
The bears are trying to stop the recovery at the resistance line of the triangle. If the bulls do not allow the price to slide below the 20-day EMA ($27,255), it will enhance the prospects of a break above the resistance line. If that happens, the BTC/USDT pair could rally to $30,000 and then to $31,000.
As the price decreases, the first level of support to be cautious of is the 20-day EMA. If this level is surpassed, it indicates that the bears are selling during rallies. This could lead to a significant drop in the pair’s value to the critical support zone between $25,811 and $25,250.
Analysis of Ether’s price
The falling wedge pattern is a bullish setup. On May 28, buyers were able to push Ether (ETH) above the resistance line, suggesting that the corrective phase may have ended.
The RSI has entered positive territory, and the 20-day EMA ($1,841) has started to rise, indicating that the bulls have the upper hand. If the bulls are able to turn the resistance line into support, the ETH/USDT pair could rally to $2,000 and subsequently to $2,141. The bullish setup’s target pattern is $2,259.
However, if the price sharply drops and falls below the 20-day EMA, it may indicate that the breakout was a bull trap. Consequently, the pair may fall to the support line.
Analysis of BNB’s price
On May 28, the bulls pushed BNB (BNB) above the immediate resistance of the 20-day EMA ($311), indicating that the $300 level is a strong support.
The buyers will try to push the price to the resistance line of the descending channel pattern. The bears are expected to defend this level aggressively because if they fail to do that, the BNB/USDT pair could surge to the overhead resistance of $350.
However, if the price turns down from the resistance line, it will suggest that the pair may spend more time inside the descending channel. The $300 level remains the key level to watch on the downside because breaking below it could sink the pair to $280.
Analysis of XRP’s price
On May 28, XRP (XRP) climbed above the neckline of the inverse head-and-shoulders pattern, completing the bullish setup.
Typically, after breaking out of a pattern, the price returns to retest the breakout level. In this scenario, the price might drop to the neckline. If it rebounds off this level with strength, it will indicate that the bulls have turned the neckline into support. This will enhance the prospects of a rally to the pattern target of $0.55.
However, if the price turns down and falls below the 20-day EMA ($0.46), it may trap several aggressive bulls. The XRP/USDT pair may then slump to $0.44 and subsequently to the crucial support at $0.40.
Analysis of Cardano’s price
On May 26, Cardano (ADA) bounced off the uptrend line, indicating that the ascending triangle pattern is still intact, and the bulls are fiercely guarding the level.
The bears are attempting to halt the relief rally at the 50-day SMA ($0.38), but if they want to gain control, they will have to yank the price below the strong support at $0.34. If they succeed, the ADA/USDT pair may plummet to $0.30.
On the other hand, if the bulls propel the price above the 50-day SMA, it will signal demand at higher levels. The pair may then rise to the overhead resistance zone of $0.44-$0.46. Breaking above this zone will signal the beginning of a new up move.
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Analysis of Dogecoin’s Price
The bulls are currently attempting to create a short-term low at $0.07. Dogecoin (DOGE) has reached the first significant obstacle that needs to be overcome, which is the 20-day EMA ($0.07).
The 20-day EMA is flattening out, and the RSI is just below the midpoint, which suggests that the bears may be losing their hold. If the DOGE/USDT pair manages to surpass the 20-day EMA, it could climb up to $0.08. This level may pose a significant challenge, but if the bulls manage to surpass it, the pair could rise to $0.10.
Alternatively, there is a possibility that the price could drop sharply from the current level, raising the risk of it falling below $0.07. The next support on the downside would be at $0.06.
Analysis of Solana’s Price
Solana (SOL) broke above the downtrend line on May 27 and the 20-day EMA ($20.42) on May 28, indicating that the bulls are attempting a comeback.
The flattening 20-day EMA and the RSI near the midpoint also suggest that selling pressure may be decreasing. The 50-day SMA ($21.67) may pose a minor hurdle, but it is likely to be crossed. This could trigger a strong relief rally towards $24.
On the other hand, if the price falls and breaks below the 20-day EMA, it would indicate that bears are still selling on rallies. The SOL/USDT pair could then retest the critical short-term support at $18.70.
Analysis of Polygon’s Price
Polygon’s (MATIC) recovery has approached the 50-day SMA ($0.97), where bears are providing strong resistance.
If buyers prevent the price from falling below the 20-day EMA ($0.90), it would indicate a shift in sentiment from selling on rallies to buying on dips. This would increase the likelihood of a break above the 50-day SMA. If this resistance is overcome, the MATIC/USDT pair could begin a rally towards the downtrend line.
The 20-day EMA remains the key support to watch. If this level is breached, the pair could slide towards $0.82. This could keep the pair within the range of $0.82 to $0.94 for several days.