Price analysis 8/31: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB

Crypto Breaking News

Aug 31

Bitcoin (BTC) price has been trying to change course while the S&P 500 is still giving up gains on a daily basis. Even though the United States equities markets have been grinding lower since Aug. 26, Bitcoin has managed to hold on to the $20,000 mark.

However, investor interest seems to be shifting away from Bitcoin. That has led to a reduction in assets under management (AUM) for Bitcoin investment products, which dropped 7.16% in August to $17.4 billion, according to a new report by CryptoCompare.

In comparison, the AUM for Ethereum (ETH) products increased 2.36% to $6.81 billion during the same period, indicating that investors are positioning themselves in Ethereum products ahead of the Merge.

*Daily cryptocurrency market performance. Source:* *Coin360*

Even though prices are down across the ecosystem, bear markets at least offer attractive opportunities to long-term investors. To capitalize on this opportunity, Reddit co-founder Alexis Ohanian's venture capital firm Seven Seven Six is aiming to raise $177.6 million for a crypto investment fund. On similar lines, former executives from Galaxy Digital and Genesis are looking to raise a $500 million fund.

Although the near term looks uncertain, long-term investors may be looking for bottom fishing opportunities. Could Bitcoin and major altcoins stay above their immediate support levels? Let's study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin turned down from the downtrend line on Aug. 30 but a minor positive is that the bulls purchased the dip near $19,500. The bulls are again trying to push the price above the downtrend line on Aug. 31.

If they succeed, the BTC/USDT pair could rally to the 20-day exponential moving average ($21,325), which is an important level to keep an eye on. If the price turns down from this level, the bears will attempt to pull the pair to the strong support zone of $18,910 to $18,626. A break and close below this zone could open the doors for a retest of the critical support at $17,622.

Conversely, if bulls push the price above the 20-day EMA, the pair could rise to the 50-day simple moving average ($22,333). If bulls clear this hurdle, the pair could pick up momentum and rally toward the overhead resistance at $25,211. The bulls have to overcome this barrier to indicate that the bottom may be in place.

ETH/USDT

Ether turned up from $1,422 on Aug. 29 and climbed back above the neckline of the head and shoulders pattern. This suggests that the breakdown on Aug. 26 may have been a bear trap.

The bulls are attempting to push the price above the moving averages. If they succeed, the ETH/USDT pair could rise to the overhead resistance at $1,700. This is an important level to keep an eye on because a break and close above it could open the doors for a possible rally to $2,000.

This bullish view will be invalidated if the price turns down from the overhead resistance and breaks below $1,422. Such a move will suggest that the recovery may be over. The pair could then decline to $1,280 and later to $1,050.

BNB/USDT

Binance Coin (BNB) bounced off the strong support at $275 on Aug. 29, indicating that the bulls are defending this level aggressively.

The bulls attempted to push the price above the 20-day EMA ($292) on Aug. 30 and 31 but the bears held their ground. If the price breaks and closes below the $275 support, the BNB/USDT pair will complete a bearish head and shoulders pattern. That could start a decline to $240 and later to the pattern target at $212.

On the contrary, if the price rebounds off $275 and breaks above the 20-day EMA, the pair could rise to $308. A break and close above this resistance could clear the path for a rally to $338.

XRP/USDT

Buyers have been defending the $0.32 level for the past three days but have failed to achieve a strong rebound. This suggests a lack of demand for XRP at higher levels.

The downsloping 20-day EMA ($0.34) and the relative strength index (RSI) in the negative territory indicate that bears have a slight edge. If the price turns down from the current level or the 20-day EMA and breaks below $0.32, the XRP/USDT pair could slide to the vital support at $0.30.

The bulls are expected to defend this level with all their might because a break below this support could signal the resumption of the downtrend. Conversely, if bulls drive the price above the moving averages, the pair may rally to $0.39.

ADA/USDT

Cardano (ADA) bounced off $0.42 on Aug. 29 and reached the 20-day EMA ($0.47) where the bears are mounting a stiff resistance.

If the price turns down from the current level, it will suggest that bears continue to sell on minor rallies. The bears will then try to sink the price to the crucial support at $0.40. This is an important level to keep an eye on because a break and close below it could signal the start of the next leg of the downtrend.

On the other hand, if buyers thrust the price above the moving averages, it will suggest strong demand at lower levels. The ADA/USDT pair could then rally to the downtrend line.

SOL/USDT

Solana (SOL) rebounded off $30 and rose above the $32 level on Aug. 29 but the bears again pulled the price back below the level on Aug. 30. This suggests that bears are selling on every minor rise.

The bulls are again trying to push the price to the 20-day EMA ($35) which is an important level to watch out for in the short term. If bulls drive the price above this level, the SOL/USDT pair could rise to the 50-day SMA ($39).

The downsloping 20-day EMA and the RSI in the negative territory indicate advantage to sellers. If the price turns down from the current level or the 20-day EMA and breaks below $30, the pair could drop to the crucial support at $26.

DOGE/USDT

The bulls successfully defended the support at $0.06 in the past few days but have failed to achieve a strong rebound off it. This suggests a lack of demand for Dogecoin (DOGE) at higher levels.

A tight consolidation near a strong support increases the possibility of a breakdown. If that happens, the DOGE/USDT pair could start its downward move toward the June 18 low near $0.05. This is an important level for the bulls to defend because a break and close below it could resume the downtrend.

Conversely, if the price rises from the current level and breaks above the moving averages, it will suggest that the latest leg of the corrective phase may be over. The pair could then attempt a rally to $0.09.

DOT/USDT

Polkadot (DOT) has been trading below the moving averages since Aug. 19 but the bears have not been able to sink the price to the strong support at $6. This suggests that selling dries up at lower levels.

The bulls will again try to push the price above the moving averages. If they succeed, it will suggest that the DOT/USDT pair could rally to $9.17 and then to the overhead resistance at $10. The bears are likely to mount a strong defense at this level.

Another possibility is that the price turns down from the moving averages and breaks below $6.79. If that happens, the bears will try to sink the pair to the crucial support of $6. A break and close below this level could indicate the resumption of the downtrend.

MATIC/USDT

Polygon (MATIC) rebounded off the $0.75 support on Aug. 29 and reached the 20-day EMA ($0.83) on Aug. 30 but the Doji candlestick pattern indicates indecision among buyers and sellers.

If bulls drive and sustain the price above the moving averages, the MATIC/USDT pair could start its northward march toward the overhead resistance at $1.05. This level is again likely to face stiff resistance from the bears.

Contrary to this assumption, if the price turns down from the moving averages, it will suggest that bears are defending the level vigorously. The pair could then again decline toward the strong support of $0.75. If this support cracks, the pair could drop to $0.63.

SHIB/USDT

Shiba Inu (SHIB) climbed back above the important level of $0.000012 on Aug. 29, indicating that bulls are buying on dips. Buyers tried to push the price above the 20-day EMA ($0.000013) on Aug. 30 but the bears did not relent.

The price is stuck between the 20-day EMA and $0.000012. This tight-range trading is unlikely to continue for long. If bears sink and sustain the price below $0.000012, the SHIB/USDT pair could drop to $0.000010.

Alternatively, if the price breaks above the 20-day EMA, the pair could rally to the overhead resistance at $0.000014. The bulls have to overcome this barrier to open the doors for a possible rally to $0.000018.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Source: Cointelegraph.com

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