DOGE, MKR, OP, and XDC gain momentum amid Bitcoin’s range-bound price

DOGE, MKR, OP, and XDC gain momentum amid Bitcoin's range-bound price

The Blockchain Industry: Analysis and Insights

Introduction

The cryptocurrency market has been experiencing volatility recently, with Bitcoin (BTC) consolidating in a narrow range. However, analysis suggests that this consolidation near the recent local high indicates that the bulls are not in a hurry to exit, anticipating further upside potential. Bitcoin’s market dominance has also dropped slightly, indicating a shift in focus towards select altcoins that are starting to gain momentum.

Crypto market data daily view. Source: Coin360

Bitcoin Price Analysis

In terms of Bitcoin price analysis, the bulls have managed to maintain support above the 50-day simple moving average ($29,377), indicating some strength. However, the price has struggled to break above the 20-day exponential moving average ($29,670), which is a negative sign.

The bears will likely try to strengthen their position by pushing the price below the immediate support at $28,861. If they succeed, it could suggest a range-bound movement between $31,000 and $24,800 in the BTC/USDT pair. Key indicators, such as the downward sloping 20-day EMA and the negative relative strength index (RSI), indicate an advantage for the bears.

On the other hand, if the bulls manage to drive the price above the 20-day EMA, it could signal a potential move towards the overhead resistance zone between $31,000 and $32,400. Breaking this barrier would be a strong signal for a new uptrend, potentially leading Bitcoin to $40,000.

In the short term, the BTC/USDT pair is within a narrow range between $28,861 and $29,690. A break and close above the overhead resistance would indicate a shift in favor of the bulls, with possible targets at $30,500 and $31,500. Conversely, a downturn and break below $28,861 would give control to the bears, potentially leading to a drop to $27,500.

BTC/USDT 4-hour chart. Source: TradingView

Dogecoin Price Analysis

Dogecoin (DOGE) is currently facing resistance just above the $0.08 level, but the bulls have not lost significant ground. Recent dips have been bought up, indicating positive sentiment and buying interest. If the price surpasses the intraday high reached on July 25, the DOGE/USDT pair could gain momentum towards $0.10 and potentially $0.11.

However, if the price turns down from current levels and falls below the 20-day EMA, it would suggest that bears are selling on rallies. In this scenario, the pair could decline to the breakout level at $0.07.

In the 4-hour chart, the DOGE/USDT pair shows signs of an uptrend, with the price rebounding above $0.08 after a dip below the 20-EMA. Breaking the overhead hurdle could lead to a resumption of the upward movement. Key support levels to watch are the 20-EMA and the 50-SMA, with a sustained break below the 50-SMA potentially leading to further downside to the breakout level at $0.07.

DOGE/USDT 4-hour chart. Source: TradingView

Maker Price Analysis

Maker (MKR) had been struggling to break past the $1,200 level for months, but the bulls finally managed to clear this hurdle on July 29. In typical price action, a breakout is often followed by a pullback to retest the breakout level. In this case, a drop to $1,200 could be expected.

The strength of the bulls will be evident if the price rebounds sharply from this support level, indicating a successful flip of $1,200 into support. Subsequently, the MKR/USDT pair could start a new uptrend targeting $1,600 and $1,900.

However, if bears push and maintain the price below $1,200, it could suggest a potential bull trap and lead to a decline towards the 20-day EMA ($1,079). A break and close below this level would indicate a bearish scenario.

MKR/USDT 4-hour chart. Source: TradingView

Optimism Price Analysis

After a period of decline, Optimism (OP) is showing signs of a new uptrend. The 20-day EMA ($1.46) has started to turn upwards, and the RSI is in positive territory, indicating bullish strength. Minor resistance exists at $1.66, but breaking this level could push the OP/USDT pair towards $1.88 and $2.

However, if the price turns down from $1.66, it would suggest selling pressure from bears on rallies. In this case, the pair may drop to important support at the 20-day EMA, with a further breakdown potentially leading to the 50-day SMA ($1.33).

OP/USDT 4-hour chart. Source: TradingView

XDC Network Price Analysis

The XDC Network (XDC) recently witnessed a strong uptrend, surging from $0.03 on July 11 to $0.06 on July 25. However, a correction is expected, possibly finding support at the 38.2% Fibonacci retracement level of $0.05 and the 20-day EMA ($0.05). A bounce from this zone would confirm bullish sentiment.

If the price rebounds from the support zone, the bulls may attempt to resume the uptrend. Breaking the intraday high of July 27 could open doors for further upside towards $0.10. However, a break and close below the 20-day EMA would negate this positive view.

XDC/USDT 4-hour chart. Source: TradingView

Conclusion

In conclusion, the cryptocurrency market is currently experiencing a consolidation phase for Bitcoin, with some altcoins gaining traction. Bitcoin’s price action will be crucial in determining the direction of these altcoins, and traders should closely monitor Bitcoin’s movement. Technical analysis of Bitcoin, Dogecoin, Maker, Optimism, and XDC Network suggests potential opportunities and key levels to watch.

The cryptocurrency market remains dynamic and subject to volatility, requiring caution and careful analysis. It is important for traders and investors to stay informed and adapt their strategies accordingly.

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