Even as Bitcoin is finding direction, certain altcoins may start to make moves. Analysts on the chain analysis platform said that the Ethereum network's gas fees have dropped to a six-month low, indicating "lack of network demand." This suggests that the market has bottomed, which may trigger a trend change in Ethereum (ETH) and related altcoins "sooner than many expected."
What are the key support levels to watch for Bitcoin and altcoins? Check out this article.
Bitcoin Technical Analysis
Bitcoin is gradually declining towards the critical support of $59,600, where the bulls are likely to mount a strong defense.
If the price rises sharply from $59,600, it will show that the bulls are not willing to surrender without a fight. The BTC/USDT pair could move up to the 20-day EMA ($64,897) and then to the 50-day SMA ($67,091). A breakout of this level will pave the way for a possible retest of $73,777.
This positive view could be negated in the short term if the price continues to decline and breaks below $59,600. This could accelerate the sell-off and drag the pair towards the 61.8% Fibonacci retracement level of $54,298.
Ethereum Technical Analysis
On April 27, Ethereum rose above the 20-day EMA ($3,214) but the bulls could not overcome the hurdle at the 50-day SMA ($3,397).
The price started turning down from the 50-day SMA on April 28, which shows that the bears are selling on every minor relief rally. The ETH/USDT pair could drop to $3,056. If the price rebounds strongly from this level, it will suggest that the bulls are trying to turn $3,056 into support. If that happens, the bulls will once again try to push the price above the 50-day SMA.
Conversely, if the price breaks below $3,056, it will indicate that bears are still in control. The pair can then drop to the critical support at $2,850.
BNB Technical Analysis
BNB (BNB) has fallen to the moving averages, which is a critical support that the bulls must defend if they want to maintain their advantage.
If the price breaks below the moving averages, it will suggest that the bears are fiercely defending the $635 resistance. Subsequently, the BNB/USDT pair is likely to drop to the strong support of $495.
Contrary to this assumption, if the price rebounds off the moving averages, it will suggest that the sentiment has turned positive and the market is buying at lower prices. This will increase the bullish outlook above $635. The pair can then move up to $692.
SOL Technical Analysis
Solana (SOL) continues to decline and it is expected to drop to the critical support of $126. Buyers are expected to defend this level aggressively.
If the price rebounds sharply from $126, it will indicate strong buying at lower levels. The SOL/USDT pair can touch the 20-day EMA ($149). If the price turns down from the 20-day EMA, it will increase the possibility of a break below $126.
Moreover, if the price breaks out of the 20-day EMA, it will suggest that the pair might stay in the $126–$162 zone for a longer period. The next directional move is likely to start on a breakout of $162 or below $126.
XRP Technical Analysis
XRP (XRP) broke below the uptrend line on April 27, which shows that the bears are trying to consolidate their positions.
The downsloping 20-day EMA ($0.53) and the RSI in the negative territory suggest that bears have the upper hand. The XRP/USDT pair could drop to the strong support zone between $0.46 and $0.41. Buyers are expected to defend this zone with all their might as a break below it could lead the pair to $0.35.
If the price rises and breaks out of the 20-day EMA, it will suggest that the bulls are attempting a comeback. Buyers will gain strength on a breakout and close above the 50-day SMA ($0.58).
TON Technical Analysis
Toncoin (TON) bounced off the 50-day SMA ($5.27) on April 27, but the rally failed to reach even the 20-day EMA ($5.70). This shows that every minor rebound has been sold off.
If the price continues to fall and breaks below the 50-day SMA, it will signal the start of the next downtrend. The TON/USDT pair could drop to $4.70 and then to $4.50.
However, the bulls might have other plans. They will try to push the price above the 20-day EMA and signal a regression. Subsequently, the pair might rise to the support line of the channel, where the bears might mount a strong defense. If the buyers push the price inside the channel, it will suggest that the correction might be over.
Dogecoin Technical Analysis
Dogecoin (DOGE) broke below a symmetrical triangle pattern on April 27, which shows that the bears are overpowering the bulls.
The DOGE/USDT pair could drop to the strong support at $0.12 where the bulls might enter. A weak rebound from $0.12 would increase the probability of a breakdown. If that happens, the pair could drop to $0.08.
On the upside, the area between the 20-day EMA ($0.16) and the downtrend line is likely to act as a significant hurdle. Buyers must overcome this hurdle to signal the end of the downtrend.
ADA Technical Analysis
Cardano (ADA) has broken below the critical support of $0.46, which shows that bears are still maintaining the pressure.
The downsloping moving averages and the RSI in the negative territory suggest that the path of least resistance is to the downside. If the price sustains below $0.46, the ADA/USDT pair could drop to $0.40.
This negative view will be invalidated in the short term if the price rises and breaks out of $0.52. This could push the price towards the 50-day SMA ($0.58), where the bears are likely to mount a strong challenge again.
(Personal opinion, not a recommendation)
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