Price analysis 4/7: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LEO

Bitcoin (BTC) made a sharp comeback and is trading near the $78,000 level. The largest cryptocurrency by market capitalization tumbled below the psychological support of $80,000 after the US stock futures market opened sharply lower on April 6. The selling continued on April 7, and Bitcoin hit a new year-to-date low of $74,508, but lower levels attracted solid buying by the bulls.

The bearish macroeconomic picture sent the Fear & Greed Index of the US stock markets to just 4/100. Usually, such periods of panic selling form a bottom as most weak hands and leveraged players capitulate. Once that happens, the recovery is likely to be sharp.

However, it is a good strategy to remain cautious and not overleverage on trades in the short term as the volatility may remain high. Even Michael Saylor’s firm Strategy, the world’s largest publicly listed corporate holder of Bitcoin, stalled its Bitcoin purchases last week.

Could Bitcoin sustain the recovery, or will higher levels attract sellers? How are the altcoins positioned? Let’s analyze the charts to find out.

S&P 500 Index price analysis

The S&P 500 Index (SPX) gapped down on April 7 for the third consecutive trading day, indicating panic among traders.

The index plunged below 4,950 but is finding support near the 61.8% Fibonacci retracement level of 4,884. Buyers pushed the price to 5,246, but the higher levels attracted selling, as seen from the long wick on the candlestick. If the price turns down and breaks below 4,835, the decline could extend to 4,700.

The relative strength index (RSI) has dropped deep into the oversold zone, suggesting a relief rally in the near term. Buyers are expected to face significant resistance at 5,400 and then at the 20-day exponential moving average (5,558).

US Dollar Index price analysis

The US Dollar Index (DXY) broke below the 103.37 support on April 3 and reached near the vital support at 101. 

The solid rebound off the 101 support shows that lower levels are attracting buyers. Sellers will try to halt the relief rally at the 20-day EMA (103.95). If the price turns down from the 20-day EMA, the bears will again try to pull the price down to 101.

Alternatively, a break and close above the 20-day EMA brings the large 101 to 108 range into play. The index could then rally to the 50-day simple moving average (105.62), which may act as a barrier.

Bitcoin price analysis

Bitcoin fell below the $76,606 support on April 7, but the long tail on the candlestick shows buying near $73,777.

The positive divergence on the RSI suggests that the bearish momentum is weakening, but it is not a signal that should be acted upon without a bullish price confirmation. A break and close above the resistance line could suggest that the corrective phase may be over. The BTC/USDT pair could rise to $89,000 and later to $95,000.

Instead, if the price turns down from the resistance line, it suggests that bears remain in command. Sellers will again try to sink the pair below $73,777. If they manage to do that, the pair could collapse to $67,000.

Ether price analysis

Ether (ETH) resumed its downtrend on April 6 after the price slipped below the $1,754 support. The failure to start a bounce off $1,550 shows a lack of demand from the bulls.

The selling has pulled the RSI into the oversold territory, suggesting a relief rally could be around the corner. If the price turns up from the current level, the ETH/USDT pair could rise to $1,754. If the price turns down from $1,754, it signals selling on rallies. That increases the likelihood of a drop to $1,350 and then to $1,150.

Buyers will have to push and maintain the price above the 20-day EMA ($1,853) to suggest that the downtrend could be ending.

XRP price analysis

XRP (XRP) turned down from the 20-day EMA ($2.16) on April 6 and closed below the $2 support, completing a head-and-shoulders pattern.

The selling continued on April 7, pulling the price below the immediate support at $1.77. Buyers will try to start a recovery but are likely to face solid selling at $2. If the XRP/USDT pair turns down from $2, it will signal that the bears have flipped the level into resistance. That increases the possibility of a drop to $1.27.

The first sign of strength will be a break and close above the $2.20 level. That suggests the markets have rejected the breakdown.

BNB price analysis

BNB (BNB) turned down sharply from the 20-day EMA ($597) on April 6 and plunged below the 61.8% Fibonacci retracement level of $559.

The BNB/USDT pair bounced off the $520 support, but the recovery is expected to face selling at the moving averages. If the price turns down from the current level or the 20-day EMA, it heightens the risk of a fall to $500 and next to $460.

The bulls will have to push and maintain the price above the downtrend line to signal a comeback. The pair may rise to $644 and then to $686. That suggests the pair may remain inside the large $460 to $745 range for some more time.

Solana price analysis

Solana (SOL) collapsed below the $120 to $110 support zone on April 6, indicating the resumption of the downtrend.

The SOL/USDT pair rebounded off $95, but on the way up, the bears are expected to pose a strong challenge between the $110 and $120 zone. If the price turns down sharply from the overhead zone, the pair may fall to $80.

Time is running out for the bulls. If they want to make a comeback, they will have to quickly push the price above the 20-day EMA ($124). The pair may then ascend to the 50-day SMA ($137).

Related: Was Bitcoin price drop to $75K the bottom? — Data suggests BTC to stocks decoupling will continue

Dogecoin price analysis

The failure of the bulls to push Dogecoin (DOGE) above the 20-day EMA ($0.17) attracted another round of selling on April 6. 

The DOGE/USDT pair dipped below the critical $0.14 support, but the long tail on the candlestick shows solid buying at lower levels. Buyers are expected to defend the $0.14 level with all their might because if they fail to do that, the pair could descend to $0.10.

The 20-day EMA is the crucial resistance to watch out for on the upside. A break and close above the 20-day EMA suggest that the bearish momentum is weakening. The pair may then climb to the 50-day SMA ($0.19).

Cardano price analysis

Cardano (ADA) turned down and broke below the $0.58 support on April 6, indicating that bears remain in control.

The ADA/USDT pair dropped near the critical support at $0.50, where the buyers stepped in. That started a recovery, which is expected to face selling at $0.58 and again at the 20-day EMA ($0.67). If the price turns down from the moving averages and breaks below $0.50, it signals the start of the next leg of the downward move toward $0.40.

Buyers will have to drive and maintain the pair above the 50-day SMA ($0.73) to signal that the bears are losing their grip.

UNUS SED LEO price analysis

UNUS SED LEO (LEO) turned down from the 50-day SMA ($9.63) on April 4 and closed below the uptrend line of the ascending triangle pattern.

That invalidated the bullish setup, which is a negative sign. The moving averages have started to turn down, and the RSI is near the oversold territory, signaling that the bears have the edge. There is minor support at $8.84, but if the level cracks, the LEO/USD pair could plummet to $8.30.

Buyers have an uphill task ahead of them if they want to prevent the downside. They will have to push the price above $9.90 to seize control.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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