Price analysis for SPX, DXY, BTC, ETH, XRP, BNB, ADA, DOGE, SOL, MATIC on 7/24.

Price analysis for SPX, DXY, BTC, ETH, XRP, BNB, ADA, DOGE, SOL, MATIC on 7/24.

The Blockchain Industry: Insights and Analysis

The recent downturn in the cryptocurrency market has sent shockwaves among traders and investors. Bitcoin, the leading cryptocurrency, plunged to $29,000 on July 24, triggering concerns that bears might take control. However, despite the short-term bearish sentiment, long-term investors remain unfazed. Glassnode data reveals that Bitcoin’s long-term holder supply has reached a new high of 14.52 million Bitcoin, equivalent to 75% of the circulating supply.

Cryptocurrency Market vs. US Equities Market

While the cryptocurrency market experiences some softness, the United States equities market is showing strength. The Dow Jones Industrial Average has risen for 10 consecutive days, marking its longest streak since 2017. However, the upcoming week carries potential shifts with a significant number of key earnings reports and the Federal Reserve’s policy decision on July 26. These events could impact not only the equities market but also the U.S. Dollar Index (DXY), which is currently on a recovery path.

S&P 500 Index Price Analysis

The S&P 500 Index (SPX) has shown strength, with buyers refusing to give up much ground despite a slight correction from its recent high. The presence of the upsloping 20-day exponential moving average (EMA) and the overbought territory of the relative strength index (RSI) indicate that bulls are in command. If the price rebounds from the 20-day EMA, it suggests that lower levels continue to attract buyers, increasing the chances of a breakthrough to higher levels.

However, a dive below the 20-day EMA could negate this positive view and expose the index to a fall towards the 50-day simple moving average (SMA).

U.S. Dollar Index Price Analysis

The U.S. Dollar Index, representing the strength of the U.S. dollar against a basket of currencies, recently turned upwards, indicating a potential reversal of the previous breakdown. The price reaching the 20-day EMA becomes a crucial level to observe. A sharp downturn from this level followed by a plunge below 99.57 would suggest a resumption of the downtrend. Conversely, a breakout above the 20-day EMA would point to renewed bullish momentum, with potential targets at the 50-day SMA and the downtrend line.

Bitcoin Price Analysis

Bitcoin witnessed a push above the 20-day EMA on July 23, but strong selling pressure at higher levels resulted in a price plunge on July 24. The break below the strong support at $29,500 raised concern among bulls. Currently, the BTC/USDT pair has reached the 50-day SMA, a crucial level to monitor.

A recovery from the current level, followed by a rise above the 20-day EMA, would suggest that the break may have been a bear trap. This scenario could lead to a rally towards $31,000. Conversely, a continued decline below the 50-day SMA may indicate a loss of bullish momentum, potentially driving the pair towards $27,500 and $26,000 levels.

Ether Price Analysis

Ether, the native cryptocurrency of the Ethereum network, encountered selling pressure near the 20-day EMA after bouncing off the 50-day SMA. The battle between bulls and bears suggests an ongoing consolidation phase within the $1,626 to $2,000 range. If the price rebounds from the 50-day SMA and rises above the 20-day EMA, it indicates strong buying at lower levels and opens the possibility of a rally to $2,000. The next significant move is likely to occur on either a breakout above $2,000 or a breakdown below $1,626.

XRP Price Analysis

XRP faced resistance and turned downward after failing to sustain above $0.83. The current correction brings it towards the 20-day EMA. Maintaining the uptrend will rely on bulls defending this level convincingly. If successful, the XRP/USDT pair may consolidate within a range with support at $0.66 and resistance at $0.86. A break above $0.86 would indicate renewed strength. Conversely, a break below the 20-day EMA may prompt further selling, potentially driving the pair to the breakout level of $0.56.

BNB Price Analysis

BNB encountered resistance near the 20-day EMA, prompting bears to attempt sinking the price below the support of a symmetrical triangle. A successful breakdown would favor sellers, potentially pushing the BNB/USDT pair towards the critical support level at $220. Buyers are expected to enter the market aggressively at this level, potentially leading to a range-bound phase. Alternatively, a bounce off the triangle’s support line would extend the pair’s consolidation within the pattern, requiring buyers to push the price above the triangle for a bullish comeback signal.

Cardano Price Analysis

Cardano experienced a tough struggle between bulls and bears near the 20-day EMA. The flattening 20-day EMA and the RSI near the midpoint indicate a lack of clear advantage for either side. Bears gain an advantage if the price drops below $0.30, potentially pushing it towards the uptrend line. In contrast, a breakout above $0.33 would suggest renewed bullish momentum, with potential resistance near the July 14 intraday high of $0.38.

Dogecoin Price Analysis

Dogecoin witnessed a battle between bears attempting to break below the breakout level of $0.07 and bulls defending this level. The turning up of the 20-day EMA and the positive zone RSI indicate the path of least resistance is to the upside. However, bears may mount strong defense at the minor resistance level of $0.08. As long as buyers prevent a decline below the 20-day EMA, the probability of a rally to $0.10 increases. A sustained decline below $0.07, on the other hand, would invalidate this positive view.

Solana Price Analysis

Solana has been experiencing profit booking from short-term traders, resulting in a drop below the 20-day EMA. Bulls will attempt to halt the downward movement around $22.30 and reclaim the overhead hurdle at $27.12. Success in breaking above the hurdle may lead the SOL/USDT pair to retest the July 14 high of $32.13. However, a dip below $22.30 would suggest that the previous break above $27.12 may have been a bull trap. Consequently, the pair’s price might continue to fluctuate inside the large range between $14 and $27.12.

Polygon Price Analysis

Polygon has been trading near the 20-day EMA, indicating efforts by bulls to defend this level. However, a lack of recovery suggests continued pressure from bears. A dip below the 50-day SMA could shift the equilibrium in favor of bears, potentially pushing the MATIC/USDT pair towards $0.60. Conversely, a rise from the current level above $0.80 would signal solid buying and a retest of the local high at $0.89, indicating a potential resumption of the uptrend.

In conclusion, the cryptocurrency market experienced a temporary setback, impacting major cryptocurrencies like Bitcoin, Ether, XRP, BNB, and Cardano. However, the long-term holders of Bitcoin remain resilient, suggesting their confidence in the future potential of the industry. Traders and investors should carefully analyze various technical indicators to navigate the market and make informed decisions.

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