Price analysis 1/27: SPX, DXY, BTC, ETH, XRP, SOL, BNB, DOGE, ADA, LINK

Bitcoin (BTC) dropped below $98,000 on Jan. 27, but the price has since recovered to trade near the psychological level of $100,000. The fall was triggered by the rapid rise of China-based AI app DeepSeek, which stoked fears of rising competition in the AI sector. Although cryptocurrencies are not directly related, the flight to safety led to $864 million in liquidations in the cryptocurrency markets within 24 hours.

BitMEX co-founder Arthur Hayes cautioned his X followers of a sharp correction in Bitcoin but said that the price could recover and end the year at $250,000 on the resumption of money printing.

Market participants will closely watch the outcome of the Federal Open Market Committee meeting on Jan. 28 and Jan. 29, where the Fed is expected to pause rate cuts. 

Although Bitcoin is struggling to break out to a new all-time high, MicroStrategy continued its buying spree for the 12th successive week. The world’s largest corporate Bitcoin holder acquired 10,107 Bitcoin at an average price of $105,596 between Jan. 21 and Jan. 26.

Could Bitcoin stay above $100,000, or will bears pull the price lower? 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 sharply on Jan. 27, indicating that the markets rejected the breakout above 6,100.

The 20-day exponential moving average (5,985) is the crucial support to watch out for. If the price rebounds off this support, it will signal that the sentiment remains positive and traders are buying on dips. The bulls will again try to push the price above 6,100, starting the journey toward the target objective of 6,347.

This positive view will be invalidated in the near term if the price closes below the moving averages. That may trap the aggressive bulls, resulting in a drop to the 5,853 to 5,773 support zone.

US Dollar Index price analysis

The US Dollar Index (DXY) has pulled below the 50-day simple moving average (107.58), indicating that the bears are trying to make a comeback.

Sellers will try to sink the price to 106.69, which is likely to act as near-term support. A bounce off 106.69 could face selling at the 20-day EMA (108.25). If the price turns down from the 20-day EMA, the index may drop to the solid support at 105.42.

If buyers want to prevent the downside, they will have to swiftly drive the price above the 20-day EMA. Such a move will signal that the correction may be over. The index may climb toward 109.46.

Bitcoin price analysis

Bitcoin plunged below the moving averages on Jan. 27, but the bulls are trying to defend the 50-day SMA ($99,382).

Both moving averages are flattening out, and the RSI is near the midpoint, indicating a balance between supply and demand. If the price rises and maintains above the 20-day EMA ($101,086), the bulls will again try to drive the BTC/USDT pair to $109,588.

Conversely, a close below the 50-day SMA will open the doors for a fall to the support of the range at $90,000. Buyers are expected to aggressively defend the $90,000 to $85,000 zone because a break below it will signal that the pair may have topped out in the short term.

Ether price analysis

Ether (ETH) slipped below the neckline of the head-and-shoulders pattern on Jan. 27. If the price closes below the neckline, the setup will be complete.

The ETH/USDT pair could decline to $2,850, which is likely to act as a formidable support. If the price rebounds off $2,850 but turns down from the 20-day EMA ($3,308), it will indicate that bears are selling on rallies. That increases the risk of a break below $2,850. If that happens, the pair may drop to $2,400.

Time is running out for the bulls. If they want to limit the downside, they will have to quickly push the price back above the 50-day SMA ($3,455). The pair may then rally to $3,745.

XRP price analysis

XRP (XRP) continued lower and broke below the breakout level of $2.91 on Jan. 27, indicating profit booking at higher levels.

The long tail on the day’s candlestick shows solid buying near the 50-day SMA ($2.54). If the price sustains above $2.91, the bulls will try to thrust the XRP/USDT pair to the downtrend line. A break and close above the downtrend line will improve the prospects of the resumption of the uptrend.

Alternatively, if the price turns down and tumbles below the 50-day SMA, it will signal that the bulls are losing their grip. That could accelerate selling, and the pair may fall to $2.20 and, after that, to $2.

Solana price analysis

Repeated failure to maintain Solana (SOL) above $260 may have tempted short-term traders to book profits.

The SOL/USDT pair turned down sharply on Jan. 26 and broke below the 20-day EMA ($231) on Jan. 27. The pair could drop to the 50-day SMA ($211), which is expected to act as strong support. However, the bears are unlikely to give up and will try to sell the rallies. If the 50-day SMA cracks, the pair may dive to $200 and then to $180.

This negative view will be invalidated if the price maintains above the 20-day EMA. That will indicate solid demand at lower levels. The pair may then attempt a rally to $260.

BNB price analysis

BNB (BNB) turned down and broke below the uptrend line on Jan. 27 but bounced back from the $635 support.

The relief rally is expected to face stiff resistance at the uptrend line and then again at the moving averages. If the price turns down from the overhead resistance, it will signal that the bears have the upper hand. That increases the risk of a break below $635. The pair may then drop to $593.

Contrarily, if the price rises above the moving averages, it will suggest that the BNB/USDT pair may remain range-bound between $635 and $745 for a few more days.

Related: Bitcoin price bounces 5%, cancels DeepSeek stocks dive as $102K returns

Dogecoin price analysis

Dogecoin (DOGE) broke below the ascending channel pattern on Jan. 27, indicating that the bears are trying to take charge.

There is solid support at $0.30, but if the level breaks down, the DOGE/USDT pair could descend to the 61.8% Fibonacci retracement level of $0.27 and eventually to the breakout level of $0.23. Such a deep correction will suggest that the pair may have topped out in the near term.

If buyers want to make a comeback, they will have to push and sustain the price above the moving averages. The pair may ascend to $0.40 and later to $0.43.

Cardano price analysis

Cardano (ADA) closed below the uptrend line of the symmetrical triangle pattern on Jan. 26, indicating that the uncertainty resolved in favor of the bears.

The bulls are defending the support at $0.87, but the recovery is expected to face selling at the moving averages. If the price turns down sharply from the moving averages, it will suggest that bears remain in control. That increases the possibility of a drop to $0.80 and subsequently to $0.76.

The first sign of strength will be a break and close above the 20-day EMA ($0.98). The ADA/USDT pair may then attempt a rally to the resistance line.

Chainlink price analysis

Chainlink’s (LINK) failure to rise above the $27.41 overhead resistance may have attracted profit booking by short-term traders.

The LINK/USDT pair dropped below the moving averages, but the long tail on the candlestick shows buying at lower levels. If the price maintains above the moving averages, the bulls will make another attempt to propel the pair above $27.41. If they succeed, the pair could rise to $31.

On the contrary, a close below the moving averages will indicate a range-bound action between $20 and $27.41 for some more time.

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.