The BTC/USDT pair drops to the channel support line and when the price is trading inside an ascending channel, traders usually try to buy dips to the support line and sell near the resistance line.
Therefore, the probability of a bounce off the support line is high. If that happens, buyers will try to push the pair above the moving averages. A breakout and a close above the 20-day exponential moving average ($23,265) could open the doors to a possible rise to the resistance line.
This positive outlook could be nullified if the price breaks and continues below the channel. Such a move could open the door to a possible drop to $18,626.
ETH / USDT
Ether (ETH) fell below the 20-day moving average ($1,771) on August 19, the first sign that the recovery may be losing steam. The important level to watch on the downside is $1700 as it acted as a strong support between August 6-10.
ETH/USDT daily chart. Source: TradingView
If the price bounces off $1700 strongly, it will indicate that the bulls are trying to turn this level into support. The ETH/USDT pair could then rise to $1,960 and later to $2,030. A break above this level could signal a resumption of the uptrend. The pair can then rise to the downtrend line.
Contrary to this assumption, if the price breaks and continues below $1700, it will indicate that traders who might buy at lower levels are closing their positions aggressively. This could push the pair towards the 50-day simple moving average (SMA) ($1519).
BNB / USDT
BNB fell below the 20-day moving average ($304) on August 17, indicating that short-term traders may lock in profits. The decline continued further and the price dropped to the 50-day simple moving average ($272) on August 19. This is an important level for the bulls to defend if they want to keep the recovery intact.
BNB/USDT daily chart. Source: TradingView
If the price breaks above the current level and rises above the 20-day moving average, the BNB/USDT pair could rise towards the general resistance at $338. That could form an inverse head and shoulders pattern, which will complete on a breakout and a close above $338.
Conversely, if the price breaks below the 50-day simple moving average, the pair could drop to $240. Such a move would suggest that the pair may remain stuck within a large range between $183 and $338 for some time.
XRP / USDT
The bulls failed to push Ripple (XRP) above the upper resistance at $0.39 on August 17, indicating that the bears continue to defend the level aggressively.
XRP/USDT daily chart. Source: TradingView
Usually, in the range, traders buy near support and sell near resistance and this is what happened with the XRP/USDT pair.
The bulls may now wait for the price to drop near the $0.30 support before buying. If the price bounces below $0.30, it will indicate that the range-bound movement may continue for a few more days.
The next directional movement could start after the buyers push the price above $0.39 or the bears plunge the pair below $0.30. Price movement within a range is usually random and choppy. Thus, experienced traders generally wait for the breakout to occur before entering into a position.
ADA / USDT
Cardano (ADA) broke below the 20-day moving average ($0.52) on August 18, indicating that the bulls may have been in a hurry to close their positions. This gave the bears a slight advantage.
ADA/USDT daily chart. Source: TradingView
Sellers squeezed their advantage on August 19 and dragged the price below the 50-day simple moving average ($0.49). This increases the possibility that the ADA/USDT pair will decline to the critical support level at $0.40.
Bulls have defended this level on two previous occasions, so the odds would prefer a bounce from it. If that happens, the pair could swing between $0.40 and $0.60 for some time. The bears will have to plunge the pair below $0.40 to start the next phase of the downtrend.
SOL / USDT
Solana (SOL) bounced off the support line on August 18 and the bulls attempted to push the price above the 20-day moving average ($41). However, the bears successfully defended the level.
SOL/USDT daily chart. Source: TradingView
This exacerbated the selling on August 19th and dragged the price below the 50-day simple moving average ($39). This nullifies the ascending ascending triangle pattern. The bears will now attempt to sink the SOL/USDT pair to $34.50.
If the price bounces off $34.50, the pair may attempt to rise above the moving averages. If that happens, the pair may consolidate between $34.50 and $48 for some time. On the contrary, a break below $34.50 could bring the pair down to $31.
DOGE / USDT
Dogecoin (DOGE) fell and broke below the $0.08 breakout level on August 18. This was the first indication that the break above $0.08 on August 14 might be a dead bounce.
DOGE/USDT daily chart. Source: TradingView
The bears continued selling and dragging the price to the trend line of the ascending triangle pattern. A break below this level could invalidate the bullish setup and open the door for a possible drop to $0.06. This level is mine