28.07.202102:10 Forex Analysis & Reviews: Analysis and prospects of the altcoin market

The cryptocurrency market has started the current trading week with enthusiasm. This was largely made possible by Bitcoin's rapid bullish breakdown. Major altcoins followed Bitcoin and achieved local victories. As of July 27, all cryptocurrencies from the top 10 made a slight price growth, with the exception of DOGE, which fell by 4.5%, namely to $ 0.207. On Tuesday, the general situation in the cryptocurrency market indicates a small pause, which was taken by the coins due to the aggravated news background and the unsuccessful attempt of Bitcoin to break through the$ 40.5 thousand mark.

Despite this, the indicators of the main altcoin continue to show growth and tend to the level of $ 2.8 thousand. For the last two days, Ethereum has managed to secure a reliable platform for the rapid growth of quotes. The starting point for the ETH/USD pair was the $ 1,750 mark, where the cryptocurrency formed a double bottom and started an upward movement. Due to the strong rebound of Bitcoin, Ethereum successfully break through the $ 2,000 mark and reached the downward resistance line easily. On June 26, the cryptocurrency broke through this level and moved to the correction zone around $ 2,400. The ETH failed to break through the pressure line, which is why it rebounded to the local support level of $ 2,156. Earlier, it was consolidating and is trying to form a key support line within $ 2.200.

Once this process is completed, the altcoin will retest the local resistance zone at around $ 2,400. The probable breakdown of this line is indicated by the bullish mood of the market, which is expressed in the main technical indicators of the coin. The local dynamics of price changes remain positive (+ 1.7%), while the MACD indicator has passed the zero mark and is starting to grow. The RSI is at 40 and the Stochastic Oscillator has formed a bullish crossover, although further dynamics are not clear yet. If Ethereum manages to break through the local support zone, then the asset will not have visible obstacles on the way to the next level of $ 2,800.

Litecoin indicators showed an excellent increase over the past two days. As a result, the asset broke through the key support zone in the area of $140 and consolidated above it. On July 27, the cryptocurrency began with a small decline, triggered by a market correction. The altcoin was quoted around $ 130 and consolidates the price for further movement to the level of $ 140 - $ 150. It is worth noting that the very indicators of LTC s due to the strong growth of other cryptocurrencies, but they began to recover again. The number of active addresses in the Litecoin network is approaching the 400 thousand mark, but the total amount of transactions in the crypto money network is falling. This is due to the growing demand for other assets that show greater growth. Despite this, the technical indicators of the cryptocurrency, as well as gradually increasing exchange rates, indicate that LTC will break through the $ 150 mark in the near future.

The Ripple token failed to take full advantage of the bullish power of the market and start an upward movement. The cryptocurrency has successfully broken through the downward resistance line and is quoted at $0.64. At the same time, the main indicators of the asset show signs of a bullish breakthrough, but XRP still failed to start a strong breakthrough. The nearest resistance zone is located at $ 0.7, followed by a movement to the round mark of $ 1. However, the on-chain indicators of the asset indicate extremely low interest in cryptocurrency. The daily activity of unique addresses in the token network has fallen to 5.5 thousand. On July 26, this indicator was approaching the level of 12.7 thousand. This indicates an underestimation of the cryptocurrency associated with litigation between the SEC and Ripple. The market stopped responding to positive news in the courtroom. This indicates that traders will wait for the completion of the trial before trading on the Ripple coin. Given the presence of more promising altcoins, XRP/USD will need at least a week to break through the $ 1 mark.

Despite the obvious bullish interest and the active growth of the main cryptocurrencies, the market is approaching an important phase. At this stage, it is a chain – the indicators of almost all major assets do not correspond to the current value of coins. During the current optimism, the market has not yet encountered strong negative impulses that can test the strength of cryptocurrency quotes. However, Amazon's refutation of unverified rumors managed to collapse bitcoin by 8%, which negatively affected the entire market. Too sharp growth is accompanied by high volatility and a large number of speculative investors. Therefore, if the market does not have time to accumulate the necessary volumes, a decline in coin quotes is very likely when encountering key resistance levels. That is why the current bullish rally is accompanied by bearish signals for a possible collapse of the entire market.