Signs of declining inflation could push Bitcoin and select altcoins above their respective overall near-term resistance levels.
Data from the Personal Consumption Expenditures (PCE) index showed a rise of 0.3% in February, less than the 0.5% rise observed in January. Economists had projected an increase of 0.4% and the PCE data suggest that inflation is gradually showing a downward trend.
Risk assets rallied in response to the data and some analysts expect the Federal Reserve to start cutting rates later in the year, The FedWatch Tool shows a 33% probability of a 50 basis point haircut by December 2023.
The cryptocurrency space is trying to break out of a long bear phase. This has improved sentiment and analysts are focusing on the long-term prospects for cryptocurrencies and blockchain technology.
Citi said in its March “Money, Tokens and Games” report that blockchain-based tokenization of real-world assets could skyrocket to $4-$5 trillion by 2030. Although a lack of legal and regulatory framework, and skepticism of industry players may pose a challenge in the short term, investment banking believes they will be overcome over time.
Could Bitcoin (BTC) and select altcoins extend their upward movement or is it time for the rally to stop? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
The bulls pushed Bitcoin above $29,000 on March 30, but the long wick of the candle shows that the bears have not given up yet and are selling rallies.
When a level becomes too difficult to cross, the price usually pulls back before making the next attempt. In this case, if the price again fails to cross $29,000, the BTC/USDT pair may retrace to the 20-day exponential moving average ($26,707). A strong bounce from this level will suggest that sentiment remains positive and that traders are buying dips. That will increase the possibility of a break above $29,185.
If the buyers are successful in their endeavor, the pair can skyrocket to the $30,000 to $32,500 resistance zone. The first sign of weakness will be a drop below the 20 day EMA. Such a move will suggest that the bulls may be booking profits. That can result in a breakout level of $25,250. Below this level, the pair could drop to the 200-day simple moving average ($20,342).
Ether Price Analysis
Ether (ETH) is facing resistance near $1857, indicating that the bears are trying to protect this level with all their might. A positive sign in favor of the bulls is that they have not given way to the bears.
The rising 20-day EMA ($1,736) and RSI in the positive territory improve the prospects for a break above $1,857. If that happens, the ETH/USDT pair can resume its upward movement and reach the upper resistance zone between $2,000 and $2,200.
Contrary to this assumption, if the price breaks below the 20-day EMA, it will suggest that the bulls have given up. That could take the price to the strong support at $1,680. A break below this level could indicate that the bears have taken over. The pair can then drop to $1,600 and then $1,461.
BNB Price Analysis
The BNB (BNB) relief rally is facing selling in the zone between the 20-day EMA ($316) and the downtrend line, but the bulls hold.
The 20 day EMA has flattened out and the RSI is close to the midpoint, indicating that the selling pressure may be easing. Aggressive bears can get trapped if the price rises above the downtrend line. That may result in a short squeeze, which could push the price to the upper resistance zone between $338 and $346.
Conversely, if the price turns down from the downtrend line and falls below $305, it will suggest that the bears are back in the driver’s seat. The BNB/USDT pair can drop to the 200-day SMA ($290).
XRP Price Analysis
The long wick on the March 29 XRP (XRP) candlestick shows that the bears are aggressively defending the resistance at $0.56.
The XRP/USDT pair formed an inside candlestick pattern on March 30, indicating uncertainty between the bulls and the bears. If the price falls below $0.52, the pair can retest the breakout level of $0.49. This is an important level to watch because a break below could extend the correction to the 20-day EMA ($0.45).
Another possibility is that the price rises from the current level and breaks above the resistance zone of $0.56 to $0.59. If that happens, the pair can skyrocket to $0.65 and then $0.80.
Cardano Price Analysis
After hesitating for two days, the bulls pushed Cardano (ADA) above the minor resistance at $0.39. Price has reached vital resistance at the neckline of the inverse head and shoulders (H&S) pattern.
The rising 20-day EMA ($0.36) and the RSI in the positive territory indicate that the path of least resistance is to the upside. If the buyers push the price above the neckline, the reversal setup will be completed. The ADA/USDT pair could rally towards the $0.60 pattern target.
On the other hand, if the price turns down from the neckline, the bears will try to sink the pair to the moving averages. This is an important level to watch out for because a slide below it could open the doors for a possible drop to $0.30.
Dogecoin Price Analysis
Dogecoin (DOGE) has been trading near the 20-day EMA ($0.07) for the past few days, indicating indecision between the bulls and the bears.
The flat 20 day EMA and the RSI near the midpoint give neither the bulls nor the bears an advantage. This uncertainty will disappear if the price breaks out of the 200-day SMA or falls below $0.07.
If the price breaks above the 200-day SMA, the DOGE/USDT pair could pick up momentum and rally towards the $0.10-$0.11 resistance zone. Bears are likely to defend this area vigorously. On the downside, a break below $0.07 could result in a retest of support near $0.06.
Polygon Price Analysis
Polygon (MATIC) broke above the 20-day EMA ($1.12) on March 29-30, but the bears held their ground. The sellers will now try to sink the price down to the strong support at $1.05.
The 20 day EMA continues to turn lower, which indicates an advantage for the bears, but the RSI just below the midpoint suggests that the bulls are trying to come back. This state of uncertainty may not continue for long.
If the price breaks out and sustains above the 20-day EMA, the MATIC/USDT pair can attempt a rally to the overhead resistance at $1.30. On the other hand, if the price dips below the 200-day SMA ($0.97), the selling could intensify and the pair could plummet to $0.69.
Related: Solana Beats FTX Fiasco: SOL Price Increases 100% in Q1
Solana Price Analysis
The buyers pushed Solana (SOL) above the 20-day EMA ($20.88) on March 29, but the bulls were unable to clear the upper hurdle at the downtrend line.
The 20-day EMA is flat and the RSI is just below the midpoint, indicating a state of balance between buyers and sellers. The SOL/USDT pair may continue to oscillate between the support at $18.70 and the downtrend line for a while longer.
Usually, when the price compresses between two levels, a strong breakout follows. If the price falls below $18.70, the pair could drop to $15.28.
Alternatively, a rally above the downtrend line will indicate a potential trend reversal. The pair can then start its march north towards $39.
Moles Price Analysis
Polkadot (DOT) broke above the 20-day EMA ($6.13) on March 29 as the bulls frustrated the bears’ attempts to push the price below the March 30 level.
The 20 day EMA has flattened out and the RSI is just above the midpoint, indicating a balance between supply and demand. The DOT/USDT pair could range from $5.70 to $6.70 for a few days.
A break and close above the $6.70 resistance will open the door for a potential rally to the neckline of the inverse H&S pattern. Conversely, if the price turns down and falls below $5.70, the pair can drop to $5.15.
Litecoin Price Analysis
The bulls once again defended the 20-day EMA ($87) on March 30, indicating strong demand for Litecoin (LTC) at lower levels.
Buyers will have to push the price above $96 to signal that the short-term corrective phase may be over. The LTC/USDT pair will then attempt to rally to $106, where the bulls are likely to encounter stiff resistance from the bears.
Alternatively, if the price turns down from the current level or the downtrend line, it will suggest that the bears are not willing to give up. That will increase the prospects of a break below the 20 day EMA. The pair can then drop to $75.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
