By James Davis
After the bulls failed to keep Bitcoin above $31,000 last Friday, the coin took a downturn, crossing below a critical support level on Tuesday. Meanwhile, blockchain analytics company Glassnode says the lower levels have attracted investors who are now accumulating more BTC.
Further, CoinShares has also revealed that institutional investors are still injecting funds into crypto investment products. According to the company’s latest report, over $130 million has been invested over the last seven days, raising inflows over the previous three weeks to $740 million.
In another story, the founder of Morgan Creek Capital, Mark Yusko, says $55,000 is the fair value of Bitcoin. He expects the market to drift toward that price by next year.
Now let’s find out the key support levels the bulls need to defend to prevent deeper drops.
Bitcoin Price Analysis
BTC trades at $29,727 after the bulls let it slide below the 20-day EMA (Exponential Moving Average) of $30,298 on Monday. Before its current price, BTC retested the $29,510 crucial support level. A long tail formed on the 1-day price chart indicates that buyers are accumulating the crypto asset.
If the bulls mount enough buying pressure to push Bitcoin above $30,298, the coin could hit $31,790, where the bears are likely to block a further price increase. On the negative side, a drop to $27,890 is predicted in case the bears sink BTC below $29,510.
Ethereum Price Analysis
Similar to Bitcoin, there is a long tail on Ethereum’s 1-day price chart, suggesting that the buyers continue to accumulate the token. ETH is valued at $1,885 as of this writing. It is likely that the token will continue trading between $1,856, which is the 50-day Simple Moving Average and $2,010 in the next few days.
However, if ETH crosses above $2,010, the bulls may trigger another rally to $2,150. On the other hand, if the bears tug the crypto asset below $1,856, it may witness a sharp drop to $1,769 and subsequently to $1,670.
XRP Price Analysis
XRP has continued to rise in value since last Thursday when its issuer Ripple won a legal battle against the United States Securities and Exchange Commission. But the upward movement has not been smooth, as there have been some pullbacks. Nonetheless, the token is still valued above the 20-day EMA of $0.6256. The bulls’ focus is to push XRP to $0.8365. If the token’s price reaches this level and then rebounds, it may reach $0.6619 and even retest $0.6256.
BNB Price Analysis
BNB fell below the 20-day EMA of $245.68 on Sunday, and the bulls’ attempts to thrust the token above that level since the start of the week have not been successful. This means the bears have formed a resistance level at $245.68. if the buyers shove BNB above this price, the digital asset could potentially touch $266.89. We do not anticipate a further rally from there because that price is attractive to the sellers.
Conversely, BNB could slide to $223.70 in case it reaches $234, and the bulls fail to defend this price.
Solana Price Analysis
One of the candlesticks on SOL’s 1-day price chart has a long wick, suggesting that bears are selling every rally. As of this writing, Solana is priced at $25.27 after dropping below the $27.16 breakout level on Monday. We now wait to see if the token will reach the 20-day EMA of $23.19. If it hits this level and bounces off, a rally to $27.16 may be possible. Breaking above this price will take Solana to $32.18.
On the contrary, if SOL plummets below $23.19, the bears will be motivated to cause another drop to $19.42.
Litecoin Price Analysis
LTC has been trending down since hitting the $113.23 resistance level on July 3. It now trades at $92.08, below the 20-day EMA of $94.62, suggesting a weakening positive momentum. The bears will now try to sink Litecoin below the $90.58 support level to increase their chances of fueling a deeper drop to $78.
However, if the bulls push the digital asset above $94.62, it may grow to retest the $107 resistance level before heading toward $113.23.