Bitcoin Enters Demand Zone: Are SOL, XRP, KAS, and AAVE Next?

Bitcoin, the world’s most popular cryptocurrency, has experienced a dramatic downturn, shattering the critical $60,000 support level on August 4. This decline has been largely influenced by a sharp drop in the Japanese stock market and weaker U.S. job growth data. Despite the significant drop, BTC is expected to recover, and several altcoins could follow suit. Let’s delve deeper into the latest developments with Bitcoin and other major cryptocurrencies like Solana (SOL), Ripple (XRP), Kaspa (KAS), and Aave (AAVE).

Bitcoin (BTC) Price Analysis

Bitcoin is under considerable selling pressure after breaching its moving averages on August 2. The dip continued with a slide below the psychological $60,000 support level on August 4, stirring anxiety among traders.

Key BTC Metrics:

• 20-day exponential moving average (EMA): $63,855
• Relative Strength Index (RSI): near oversold territory

The RSI nearing oversold indicates that the bears have grabbed hold of the market. Should there be an attempt at recovery, it will face robust resistance at the 20-day EMA. A sharp decline from this level will heighten the risk of Bitcoin falling below the crucial $55,724 support.

Conversely, a break above the 20-day EMA would suggest that Bitcoin may remain within its current range temporarily.
The 4-hour chart reveals that the bears managed to break through the $60,000 support, making the next supports $55,724 and $53,485. If Bitcoin’s price approaches these levels, buyers are likely to step in, preventing a more severe decline.

Solana (SOL) Price Analysis

Solana has been fluctuating inside a large range between $116 and $210, indicating fluctuating investor sentiment. Recent activity saw the price drop below its moving averages.

Key SOL Metrics:

• Support zones: $127 to $116
• 20-day EMA: $162

Solana is expected to find support between $127 and $116. If it rebounds, it will face selling pressure again at the 20-day EMA. Breaking above this EMA is critical for a rally toward $188. The altcoin’s four-hour chart shows a steep drop into an oversold territory, with support likely between $135 to $121. A break below this could retest $121, whereas a successful recovery might push the price to $165.

XRP Price Analysis

XRP also joined the downtrend after failing to stay above $0.64, causing a plunge to its 50-day simple moving average (SMA).

Key XRP Metrics:

• 20-day EMA: $0.57
• 50-day SMA: $0.52
• Support zones: $0.46 to $0.41

If XRP’s price rebounds from its current level, a sustained rise above the 20-day EMA could indicate a rally towards $0.64. However, failure to hold above the 50-day SMA suggests a drop to the $0.46 – $0.41 support zone is likely. The RSI being near oversold conditions suggests the bears have control, but any decisive move above the 20-EMA might indicate the downside is limited.

Kaspa (KAS) Price Analysis

Kaspa faced a sharp decline from $0.21 on August 1, yet buyers are finding support at the 50-day SMA.

Key KAS Metrics:

• Current price level: $0.17
• 20-day EMA: $0.18

For recovery, Kaspa needs to clear the $0.18 level and aim for $0.19. Should the price continue downward and break below the 50-day SMA, a deeper correction towards $0.14 is probable. The 4-hour chart shows continued bearish control; however, a bounce off the uptrend line could signal a potential recovery move, pushing the price back towards the 20-EMA.

Aave (AAVE) Price Analysis

Aave’s bullish momentum above the $115 resistance on August 1 was short-lived, showing the pressure from sellers.

Key AAVE Metrics:

• 20-day EMA: $101
• 50-day SMA: $93

A failed rally attempt suggests the potential for a further fall to the 50-day SMA. Conversely, if Aave manages to rebound from the current level and cross above $115, it could signal positive market sentiment, driving the price to $130. The 4-hour chart illustrates that sellers are active, but any substantial hold above the moving averages might indicate that the correction phase is over, paving the way for a climb to $130.

Final Thoughts

The recent volatility in Bitcoin and major altcoins like Solana, Ripple, Kaspa, and Aave reflects the cautious market sentiment amid broader economic concerns. Whether these cryptocurrencies will bounce back remains to be seen, but critical support and resistance levels will be areas to watch closely. For those seeking further insights into cryptocurrency trends, [CoinDesk](https://www.coindesk.com) and [CryptoSlate](https://cryptoslate.com) offer detailed market analyses and updates. As always, it’s essential to conduct comprehensive research before making investment decisions, as cryptocurrency markets are notoriously volatile.