The recent Federal Reserve meeting, held on September 20, did not result in an interest rate hike but hinted at the possibility of rates remaining elevated for a longer duration. Fed Chair Jerome Powell emphasized that achieving sustainable inflation at 2% still has a long way to go. This news might have triggered a sell-off not only in the U.S. equities markets but also in the cryptocurrency space. Risk assets tend to perform poorly in a high-interest-rate environment.
Despite a drop in the S&P 500 by over 2% and the Nasdaq by about 3% during the week, Bitcoin (BTC) has remained relatively stable. Altcoins, on the other hand, have struggled to maintain their intra-week gains. However, it's encouraging to note that Bitcoin and major altcoins have generally held above their crucial support levels. The upcoming price action is crucial, as it will likely witness a battle between the bulls and bears.
Here's a breakdown of the price analysis for the top 10 cryptocurrencies:
Bitcoin (BTC)
Bitcoin has been trading within a tight range between moving averages, indicating uncertainty about its next direction. Buyers aim to keep the BTC/USDT pair above the 20-day exponential moving average ($26,520). If successful, they will target the 50-day simple moving average (SMA) at $27,050, followed by a potential surge to $28,143. Conversely, a drop below the 20-day EMA could indicate bearish control and raise the risk of testing the crucial support at $24,800.
Ethereum (ETH)
Ethereum turned down from the 20-day EMA ($1,628), indicating continued bearish sentiment. Bears might try to push the price below the critical support at $1,530, potentially leading to a downward move toward the next major support at $1,368. However, a rebound from the current level or $1,530 would suggest renewed buying interest. A break and close above $1,670 could set the stage for a rally to $1,745.
Binance Coin (BNB)
BNB fell below the 20-day EMA ($214), potentially consolidating between $203 and $220. If the price remains below the 20-day EMA, bears may target the crucial support at $203, indicating a resumption of the downtrend. Bulls need to clear the 50-day SMA ($222) to signal a comeback, with resistance expected at $235 and $250.
XRP
XRP rose above the 20-day EMA ($0.51) on September 19 but is struggling to sustain the recovery. A bounce from the 20-day EMA could indicate a shift from selling on rallies to buying on dips, with resistance at the 50-day SMA ($0.53) and $0.56. A break below the 20-day EMA could lead to a test of the uptrend line, a critical level for the bulls.
Cardano (ADA)
Cardano's ADA has formed a descending triangle pattern, with support at $0.24. The moving averages suggest a bearish advantage, but a bullish divergence on the RSI may slow down bearish momentum. Buyers need to push the price above the downtrend line to prevent a breakdown. A drop below $0.24 could set the stage for a fall to $0.22 and eventually $0.19.
Dogecoin (DOGE)
DOGE faced resistance at the 20-day EMA ($0.06), but support at $0.06 remains strong. This suggests that buyers are active on dips. A move above the 20-day EMA could lead to a recovery toward the 50-day SMA ($0.07) and $0.08. However, a break below $0.06 could lead to a potential decline to $0.055.
Solana (SOL)
SOL rose above the 20-day EMA ($19.57) but couldn't reach the 50-day SMA ($21.01), indicating bearish pressure at higher levels. The 20-day EMA is a battleground for bulls and bears. If sellers keep the price below it, SOL may drop to $18.50 and then $17.33. Sustaining above the 20-day EMA could set the stage for a retest of resistance between the 50-day SMA and $22.30.
Toncoin (TON)
TON failed to surpass $2.59, and its immediate support is at $2.25. If this level breaks, TON could drop to the 20-day EMA ($2.08). A rebound from this level could lead to a range-bound trading between $2.07 and $2.59. A move above $2.25 could increase the likelihood of a break above $2.59, targeting $2.90.
Polkadot (DOT)
DOT faces strong resistance at $4.22, and every relief rally is met with selling pressure. Downward momentum is indicated by moving averages and RSI in negative territory. If the price drops below $3.90, it may continue lower toward $3.58. A positive divergence in RSI suggests reduced selling pressure, and a break above $4.22 could lead to a rally.
Polygon (MATIC)
MATIC closed above the 20-day EMA ($0.54) but failed to maintain momentum. Bears aim to push the price below strong support at $0.49, which could resume the downtrend towards $0.45. Alternatively, a rebound from $0.50 could indicate buyer interest, with a need to break and sustain above $0.55 for a stronger recovery.
It is not investment advice
