Market analysis: BTC, ETH, ADA, BNB, XRP, SOL, DOT, DOGE, AVAX, UNI

On Sept. 22, the cryptocurrency market and U.S. stocks were attempting to recover as fears of widespread contagion sparked by a default by Chinese developer Evergrande receded. Ray Dalio, co-chairman of Bridgewater, said on September 22 that Evergrande’s debt was “manageable.”

Ming Tan, a director at credit rating agency Standard & Poor's, said the Chinese government could step in to restructure Evergrande.

The Crypto Fear and Greed Index has dropped to 21 points, indicating extreme investor concern. However, in an interview with CNBC, Galaxy Digital CEO Mike Novogratz said that as long as Bitcoin (BTC) stays above $40,000 and Ethereum (ETH) stays above $2,800, the cryptocurrency market is still in good shape.

Daily cryptocurrency market performance Source: Coin360

Traders are likely to now turn their attention to the Fed's Sept. 22 policy statement, which will include economic and interest rate forecasts, followed by a news conference from Fed Chairman Jerome Powell.

Can Bitcoin and Altcoins Sustain Rally, or Will Higher Levels Attract Selling From Bears? Let’s take a look at the chart of the top ten cryptocurrencies.

BTC/USDT

Bitcoin fell below the neckline on Sept. 21, completing a bearish head and shoulders pattern. However, on a positive note, the bulls pushed the price back above the neckline on September 22. This suggests strong buying at lower levels.

BTC/USDT daily chart Source: TradingView

If buyers sustain the price above the neckline, it could trap aggressive bears, leading to a short squeeze. BTC/USDT could then rally towards the 20-day exponential moving average (EMA, $46,038), a level where bears could face a serious challenge.

The moving averages have formed a dead cross and the relative strength index (RSI) is in negative territory, suggesting that the bears are in control.

If the price cannot sustain above the neckline, the bears will attempt to resume the downtrend. The first support on the downside is $37,332.70 and then the pattern target at $32,423.05.

A breakout and close above the moving averages would be the first sign that the correction may be over.

ETH/USDT

Ethereum crashed and closed below $3,000 on Sept. 20, forming a bearish head and shoulders pattern. Normally, a break from the neckline is followed by a retest, which is what happened on September 22.

ETH/USDT daily chart Source: TradingView

The moving averages have formed a dead cross and the RSI is in negative territory, suggesting a positive for the bears. If the price turns down from the current levels, the bears will try to resume the downtrend towards the pattern target at $1972.12.

Conversely, if the bulls sustain the price above $3,000, it will indicate accumulation on the downside. ETH/USDT could then bounce back towards the 20-day EMA ($3303), which could act as a strong resistance again. A breakout and close above this level could signal that the bulls are back in the game.

ADA/USDT

Cardano (ADA) is in a strong correction phase, but the bulls are trying to arrest the decline at the strong support at $1.94, where they are likely to encounter resistance at the 20-day EMA ($2.38).

ADA/USDT daily chart Source: TradingView

The moving averages are close to forming a dead cross and the RSI is in negative territory, suggesting that the bears have the upper hand. If the price turns down from the 20-day EMA, the bears could challenge the $1.94 support again.

A break and close below this level could open the door for a further decline to $1.60. Bulls will have to push and sustain the price above the 20-day EMA to signal the start of a sustained recovery. ADA/USDT could then rise to $2.60 and then to $2.80.

BNB/USDT

BNB fell below the September 7 low of $369 on September 20 and reached strong support at $340 on September 21. Currently the bulls are trying to defend this level.

BNB/USDT daily chart Source: TradingView

The moving averages have formed a dead cross and the RSI is below 41, suggesting that the bears are in a strong position. Any pullback is likely to be met with strong selling around the 20-day EMA ($410).

If the bears sink the price below $340, BNB/USDT could drop to the psychological support of $300 and then to $250. This negative view will be negated if the bulls push and sustain the price above the overhead resistance at $433.

XRP/USDT

Ripple (XRP) plummeted on Sept. 20, closing at $0.95, below its intraday low on Sept. 7, indicating an oversupply. The moving averages have formed a dead cross and the RSI is in negative territory, suggesting that the bears have the upper hand.

XRP/USDT daily chart Source: TradingView

The current relief rally is likely to hit a hurdle at the 20-day EMA ($1.06). If the price turns lower from this resistance, it will indicate that traders continue to sell on rallies. The bears will then attempt to resume the downtrend.

If the price falls below $0.85, XRP/USDT could drop to the next support at $0.75. The bulls will have to push and sustain the price above $1.07-$1.13 to show strength.

SOL/USDT

Solana (SOL) broke below and closed below the 20-day EMA ($144) on Sept. 20, the first sign that the bullish momentum may be weakening. On September 21, the bulls attempted to push the price back above the 20-day EMA but failed, suggesting that the bears are attempting to stage a comeback.

SOL/USDT daily chart Source: TradingView

SOL/USDT bounced off the 61.8% Fibonacci retracement level at $123.42 and has reached the 20-day EMA.

If the bulls push the price above the 20-day EMA and the downtrend line, SOL/USDT could rise to $171.47. This level could act as resistance again, but a break above it could lead to a move to $200 and then to $216.

Conversely, if the price turns down from the current level or downtrend line, it will signal selling at higher levels. The bears will then attempt to sink the price below $123.42 and extend the decline to the 50-day simple moving average ($104).

DOT/USDT

DOT fell below its 50-day SMA ($27.71) on Sept. 21, but bulls bought aggressively and reclaimed that level on Sept. 22. This seems to have trapped the bears, leading to a short squeeze.

DOT/USDT daily chart Source: TradingView

DOT/USDT has reached the 20-day EMA ($31.42), which is an important level to watch. If the buyers push the price above this resistance, DOT/USDT could rise to $35 before retesting $38.77.

Conversely, if the price turns down from the 20-day EMA, it will indicate that traders are selling on the rally. The bears will then make another attempt to pull the price to the Sept. 7 intraday low of $22.66.

DOGE/USDT

Dogecoin (DOGE) fell below the support at $0.21 on Sept. 20, but the bears failed to break below the next support at $0.19. This indicates that demand is at a low level.

DOGE/USDT daily chart Source: TradingView

The bulls are attempting to sustain the price above $0.21 on September 22. If so, DOGE/USDT could rise towards the 20-day EMA ($0.24). The bears are likely to defend this level aggressively.

If the price turns down from the 20-day EMA, the bears will make another attempt to drag the price below the $0.21 to $0.19 support zone. If they succeed in doing so, DOGE/USDT could drop to the critical support at $0.15.

The bulls must push and sustain the price above the downtrend line to signal that the correction may be over.

AVAX/USDT

Avalanche (AVAX) rebounded sharply from the 20-day EMA ($56.34) on September 22, indicating that market sentiment remains positive and traders are buying on dips.

AVAX/USDT daily chart Source: TradingView

Buyers have pushed the price to the overhead resistance at $66.24, raising the possibility of a retest of the all-time high at $76.27. A break and close above this resistance would signal a resumption of the uptrend.

Contrary to this assumption, if the price turns lower from current levels or overhead resistance, this will indicate that higher levels are attracting profit-taking exits. The bears will then make one more attempt to pull the price below the 20-day EMA.

If they succeed, AVAX/USDT could start a deeper pullback to $48 and then to the 50-day moving average ($40.49).

UNI/USDT

Uniswap (uniwap) fell below its Sept. 7 intraday low of $21, a sign that traders are rushing out. The price is currently correcting within a descending channel pattern.

UNI/USDT daily chart Source: TradingView

The 20-day EMA ($24.10) is down and the RSI is below 41, suggesting that the bears have the upper hand. Any rebound from current levels is likely to face stiff resistance at the 20-day EMA.

If the price turns down from this resistance level, UNI/USDT can drop to the support line of the channel. A break below $18 could open the door for a possible drop to $13.

This negative view will be invalidated if the price breaks out and closes above the descending channel. Then, UNI/USDT may gradually rise to $27.62.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness. In view of the fact that China has not yet issued policies and regulations related to digital assets, users in mainland China are advised to be cautious in digital currency investment.