We report the traditional weekly crypto market analysis based on the contribution by Aayush Jindal (Cryptonews.com). The analysis was made on July 31.
After another failed attempt to clear $11,250, bitcoin price started a downside correction. BTC traded below 11,050 and it is now trading below 11,000. An initial support is near 10,800. The main uptrend support is near 10,550 and 10,500, below which the price might turn negative in the short term. On the upside, the price could face a short-term resistance near 11,050. The major hurdle is still near 11,250, above which the price might start a fresh rally.
Ethereum price is struggling to climb back above the $325 resistance. On the downside, there are many supports, starting with 315. The first major support is near 310, below which the price might retest 300. To start a fresh rally, the bulls need to gain strength above 325. In this case, the price may perhaps rise towards 335 and 340.
Bitcoin cash price spiked towards the $300 resistance area before correcting lower. BCH is down around 2% and it is approaching the 280 support. If there are more losses, the bears might test the 265 support. On the upside, the bulls are facing many barriers near 288 and 295.
ADA is consolidating below the $0.140 and $0.142 resistance levels. The main resistance is still near 0.145, above which the price might revisit 0.150 and 0.155. Conversely, there is a risk of a bearish wave towards the 0.130 support zone in the coming sessions.
XRP price is outperforming most major altcoins and it is currently up over 2%. The price is now trading above $0.242 and it could continue to rise towards 0.245. The key breakout zone is forming near 0.250. On the downside, the previous hurdles near 0.240 and 0.238 are important supports.
In the past three sessions, a few small altcoins gained over 5%, including AVA, LEND, RUNE, DGTX, SNX, MKR, and MIOTA. Conversely, AMPL nosedived around 50% and KAVA is down around 10%.
Three Bullish Technical Signals Sustain XRP’s Rally
Fredrik Vold (Cryptonews.com) writes an article on the technical analysis of XRP’s current trend. “The Ripple-affiliated XRP token continued its surge higher in the market, while technical analysis shows several bullish signals. At pixel time (10:59 UTC, July 30), XRP was up by almost 9% over the past 24 hours, with the majority of the gains seen late last night in the US and in the early hours of the Asian trading session today.
The gains today made XRP the second-best performing cryptoasset among the top 20 coins by market capitalization, following only EOS, which was up nearly 10% at the same time. Additionally, today’s gains also mean that XRP now leads BTC on a weekly basis, with a 7-day performance of 21%, versus bitcoin’s 18% rise over the same period. The rally in XRP first started to gain momentum as the price of the coin broke through its 200-day moving average line on Saturday, bringing additional gains on both Monday and Tuesday this week.
The 200-day moving average has acted as important resistance for the XRP price recently, with failed attempts at breaking above it seen on many occasions, including on April 30, June 2, and July 9. A break above this line might lead to a strong rally, as traders speculate that the coin may be entering a bull market. Following the gains on Monday and Tuesday, the price also followed through with further gains today, which caused it to break above its post-Black Thursday high from April 30 at around USD 0.23. Lastly, traders basing their decisions on technical analysis may also have noticed a so-called cup-and-handle pattern in the chart, as the price broke higher during the weekend, further boosting optimism. The cup-and-handle pattern is among the best-known classical chart patterns, typically seen by technical analysts as the beginning of a bullish trend.”
Dollar Falls to Lowest Level in Over 2 Years While Gold, Silver, Bitcoin Continue to Rise
Zack Voell (Coindesk.com) writes an article on the crisis of the US dollar, reporting that “the dollar on Thursday dropped to its lowest level since May 2018 as the Federal Reserve said it plans to keep interest rates close to zero, and inflation hedges continue to show strength. The dollar’s trade-weighted index – a measure of its value relative to a basket of other dominant currencies – dropped to $93.04 Thursday afternoon. The last time the index traded this low was on May 15, 2018, according to TradingView.
As the dollar weakens, gold continues to trade near its new all-time highs, reaching $1,980 on Tuesday. The yellow metal has gained more than 10% in July. Silver has rallied nearly 30% in July, trading at $23.26 at last check.
Bitcoin, previously stuck trading in a tight range between $9,000 and $10,000 for nearly two months, followed the rallies in precious metals when it broke above $11,400 on Tuesday.
Bitcoin has soared 53% in 2020, according to Messari. “In the coming weeks you’ll see the dollar weakening further,” Qi Gao, a currency strategist at Scotiabank, told the Financial Times.”