Price analysis 2/24: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, SHIB

Strong inflation data has pulled Bitcoin and select altcoins below their immediate support levels, signaling a few days of corrective action.

Bitcoin (BTC) is struggling to stay above $23,000 as the weekend approaches. The selling pressure increased after the personal consumption expenditures excluding food and energy rose 0.6% in January and 4.7% over the year, above market expectations of an increase of 0.5% and 4.4% respectively. 

This could trigger fears that the United States Federal Reserve may have to continue its rate hikes to bring inflation under control. Expectations of a rate hike could strengthen the U.S. dollar index further, which is already near a seven-week high, and that may put pressure on the cryptocurrency markets in the near term.

A drop in the cryptocurrency markets may start a discussion that the rally in January may have been a bull trap. However, the price action in Bitcoin and several altcoins show that a bottoming formation may have begun. The next dip may form a higher low before attempting a move higher.

What are the important support levels in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Buyers successfully held the 20-day exponential moving average ($23,440) for the past two days but the failure to sustain the rebound attracted strong selling on Feb. 24.

The negative divergence on the relative strength index (RSI) suggests that the bullish momentum is weakening. The BTC/USDT pair has reached immediate support at $22,800.

A break below this level could retest the crucial support zone between the 50-day simple moving average ($22,052) and $21,480.

Alternatively, if the price fails to sustain below the 20-day EMA, it will indicate that bulls are buying the dips as they anticipate a move higher. A break and close above $25,250 may start the next leg of the uptrend.

ETH/USDT

Ether (ETH) slipped below the 20-day EMA ($1,624) on Feb. 22 but the long tail on the candlestick shows solid buying at lower levels. The bulls tried to build upon the advantage on Feb. 23 and drive the price above $1,680 but the bears held their ground.

The selling intensified on Feb. 24 and the price dropped to the 50-day SMA ($1,565). This is an important support for the bulls to guard because if it cracks, the ETH/USDT pair could plummet to $1,461.

Contrarily, if the price rebounds off the 50-day SMA with strength, it will indicate that bulls are buying the dips. The buyers will then attempt to kick the price above the $1,680 to $1,743 resistance zone and resume the up-move.

BNB/USDT

BNB’s (BNB) tight range trading between the overhead resistance of $318 and the 50-day SMA ($304) resolved to the downside on Feb. 24. This indicates that bears have overpowered the bulls.

Although the 20-day EMA ($310) is flat, the RSI has dipped below 46, suggesting that the momentum is shifting in favor of the bears. The BNB/USDT pair could slump to the $280 level. This is an important level to watch out for because a break below it will complete a bearish head and shoulders (H&S) pattern.

If buyers want to avoid the sharp decline, they will have to quickly propel the price back above $318. That could clear the path for a rise to the neckline of the bullish inverse H&S pattern.

XRP/USDT

XRP (XRP) traded near the resistance line of the descending channel pattern for the past few days but the bulls could not enforce a breakout.

That may have attracted selling from the short-term bears who yanked the price below the moving averages. The XRP/USDT pair could now drop to the solid support at $0.36. If this level also fails to hold up, the decline may extend to $0.33.

Contrary to this assumption, if the price rebounds off $0.36, the bulls will make one more attempt to overcome the barrier at the resistance line. If they can pull it off, the pair may rally to the overhead resistance at $0.43.

ADA/USDT

The bulls managed to keep Cardano (ADA) above the immediate support of $0.38 for the past two days but they failed to sustain the rebound above the 20-day EMA ($0.39). This suggests that bears are selling on minor rallies.

The price dropped to the 50-day SMA ($0.37) on Feb. 24. If this support gives way, the ADA/USDT pair could slide to the strong support zone between $0.34 and $0.32. Buyers are expected to defend this zone with all their might because if they fail to do that, the selling may intensify and a drop toward $0.27 could not be ruled out.

Conversely, if the price turns up from the current level, the bulls will again try to thrust the price above the 20-day EMA and retest the neckline of the inverse H&S pattern.

DOGE/USDT

After staying above the 50-day SMA ($0.08) for several days, Dogecoin (DOGE) slipped below the level on Feb. 23. This indicates a minor advantage to the bears.

The DOGE/USDT pair could drop to the strong support near $0.08. Buyers are likely to defend this level aggressively because a break and close below it could complete a bearish H&S pattern in the near term. That could start a downward move toward the critical support of $0.07 and then to the pattern target of $0.06.

If bulls want to gain the upper hand, they will have to push the price above $0.09. That may result in a retest of the $0.10 to $0.11 resistance zone.

MATIC/USDT

Polygon (MATIC) rebounded off the 20-day EMA ($1.32) on Feb. 22 as seen from the long tail on the day’s candlestick. However, the bears sold the recovery and the price tumbled below the 20-day EMA on Feb. 24.

During uptrends, if the 20-day EMA cracks, the short-term bulls tend to book profits. That starts a deeper correction, which sometimes extends to the 50-day SMA ($1.13). Here too, if the bears sustain the price below $1.30, the MATIC/USDT pair may decline to the 50-day SMA. This level is again likely to attract buyers.

If bulls want to prevent a deeper correction, they will have to quickly push the price above the downtrend line. The pair could then rise to $1.50 and subsequently to $1.57.

Related: Bitcoin price continues to fall, but derivatives data hints at a short-term rally to $25K

SOL/USDT

Solana (SOL) failed to rebound off the 20-day EMA ($23.32) in the past two days, indicating a lack of aggressive buying by the bulls. That may have encouraged the bears who pulled the price to the 50-day SMA ($22.19).

The flattening 20-day EMA and the RSI near the midpoint indicate that the buying pressure is reducing. If the 50-day SMA gives way, the SOL/USDT pair may tumble to the next support at $18.73. This is an important level to keep an eye on because a break below it may start a deeper correction to $15.

This negative view will invalidate in the near term if the price turns up from the moving averages and surges above $28. The pair may then quickly run up to $39.

DOT/USDT

Polkadot (DOT) jumped from the 20-day EMA ($6.79) on Feb. 22 and rose above the $7.25 resistance on Feb. 23 but the bulls could not sustain the rebound. This indicates that the bears are attempting a comeback.

The selling continued on Feb. 24 and the bears have pulled the price below the 20-day EMA. The immediate support is at the 50-day SMA ($6.25) but if it cracks, the selling could accelerate and the DOT/USDT pair may dive to $5.50.

If bulls want to invalidate the bearish view, they will have to successfully defend the moving averages and push the price above $7.39. That will indicate strong demand at lower levels. The pair may then rise to $8 and thereafter to $9.50.

SHIB/USDT

The long wick on Shiba Inu’s (SHIB) Feb. 23 candlestick shows that bears are selling on rallies close to the overhead resistance at $0.000014.

The price action of the past few days has formed a symmetrical triangle pattern, indicating indecision among the bulls and the bears. The advantage could tilt in favor of the bears if the price breaks and sustains below the triangle. That may start a slide to the 50-day SMA ($0.000012) and eventually to $0.000011.

Contrary to this assumption, if the price turns up and breaks above $0.000014, it will suggest that bulls are back in the driver’s seat. The SHIB/USDT pair could then climb to $0.000016.

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