On Monday, the crypto market saw a sharp downturn after news broke that the US Securities and Exchange Commission had brought charges against crypto exchange Binance. The agency alleges that the company offered American investors BUSD and BNB as unlicensed securities.
The lawsuit is likely to cause a delay in recovery for cryptocurrencies. That’s because, in a situation like this, many traders would prefer to take a break from trading until there is clarity. Another event that might reduce the chances of a quick recovery is the Fed’s upcoming meeting set for June 14.
Here are the support levels to watch keenly, as they may attract buyers:
Bitcoin Price Analysis
As of this writing, BTC is trading at $25,778 after breaking below the $25,850 support level. Prior to the current price, the buyers tried to stage a rally above the 20-day Exponential Moving Average (EMA) of $27,234 on Sunday, but the sellers aggressively resisted every attempt. Yesterday, the bears pulled BTC down below $27,234 and now aim to sink the crypto asset further to the $25,300 support level. The bulls must defend this price. Failing to do so, Bitcoin may plummet to $20,200.
For the coin to rally toward $31,500, its price must cross the resistance at the 50-day Simple Moving Average (SMA) of $27,745.
Ethereum Price Analysis
ETH successfully broke above the $1,854 resistance level last week, reaching $1,903 on Sunday. However, the token took a strong hit yesterday, falling below the crucial support level of $1,830 to settle at $1,814 as of this writing. With the bears seemingly in charge, the next stop for Ethereum could be at the $1,753 support level.
On the upside, the bulls need to take the token’s price above the $1,929 resistance level to give room for a massive rally to $2,030 and subsequently to $2,300.
BNB Price Analysis
BNB has seen the biggest 24-hour price decline (7.8%) among the top ten cryptocurrencies, and that is because it was mentioned in the Securities and Exchange Commission’s lawsuit against Binance. The sharp sell-off on Monday has sunk the token below the $281 support level to its current price of $277. The bears’ next target is $264, where there could be increased buying pressure. An upturn at this level may cause BNB to reach the 20-day EMA of $307. A further rally may be unlikely because the bears are expected to apply selling pressure at this price.
XRP Price Analysis
XRP is now valued at $0.513. Before this price, the token reached $0.548 on Sunday but couldn’t rally further to retest the $0.564 resistance level as sellers began booking profits. We now need to watch where the price will head once it reaches the 20-day EMA of $0.493. If XRP starts an upward move from there, then it could mean the bulls are buying the dip. Conversely, a further decline could indicate negative sentiment and a drop to the $0.463 support level becomes possible.
Cardano Price Analysis
ADA rallied to the 50-day SMA of $0.385 on Sunday, but the long wick formed that day on the token’s candlestick indicated that the bears were not planning to allow any further price increase. Cardano is now trading at $353, below the uptrend line. The bulls must quickly drive the price above the uptrend line to prevent the token from hitting the $0.306 support level. But still, there won’t be a massive rally until ADA trades above $0.391.
Dogecoin Price Analysis
The bulls’ attempts to push this dog-themed meme coin above the 20-day EMA of $0.072 in the last seven days have all failed. This suggests that the bears are aggressively defending this price. DOGE changes hands for $0.067 at press time. The current price is below the $0.068 support level, thus opening a possibility for a further drop to $0.060. A potential recovery can only start when the bulls push Dogecoin’s price above $0.072.
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