After weeks of consolidation, major altcoins boomed overnight. As Elon Musk’s tweet gave a strong push to the cryptocurrency market, Dogecoin gained 16% over the last 24 hours. This rally in Dogecoin’s prices propelled it to become overbought for the first time in the month of July.
Ethereum’s market capitalization rose and it showed chances of observing high market volatility. Binance Coin showed substantial signs of recovery as capital inflows hiked but it also flashed the probability of a price breakout soon.
Ethereum gained by 8.3% over the last 24 hours. Its market capitalization surged by 7.19% owing to the price surge. The trading volume of Ethereum witnessed a positive change as buyers had started to flock to the market in anticipation that prices could rally further. This change in sentiment came amidst Amazon’s stance on adopting cryptocurrencies.
Bollinger Bands opened up at the time of writing, suggesting that market volatility could be anticipated, prices could either fall or rise sharply. On the downside, if ETH loses momentum it could land back on the $2160 level. Buying increased as prices saw an upturn. The asset was overvalued and buying pressure pushed the coin to the overbought zone as pictured on the Relative Strength Index.
The bullish signal may continue to help ETH challenge its immediate resistance level of $2390. At press time, the alt-king was valued at $2342. On the Awesome Oscillator, green signal bars found precedence over red signal bars, implying that the bulls were stronger in the market.
Binance Coin (BNB)
It had been a very slow few weeks for Binance Coin, as regulatory concerns made it harder for the coin to move higher. Post July 21, most of the altcoin market showed signs of recovery, but BNB’s rate of recovery was placid in comparison.
Over the last 24 hours, however, BNB replicated the movement of other altcoins, as it gained about 4.6% as prices stood at $318 at press time. BNB broke the robust price support level of $291 as it traded much above that mark.
The strong recovery brought the bulls back in the run. At the time of writing, MACD showed green histograms suggesting a bullish signal in the market. A chance of price breakout still looked possible since, as the Squeeze Momentum Indicator showed, the market entered a period of low volatility but also with a presence of squeeze.
Capital inflows stayed steady with buyers coming back to the market as the Chaikin Money Flow displayed an uptick. Capital inflows were more in comparison to outflows at the time of writing.
DOGE maintained its bullish momentum quite well as it traded above its price floor of $0.19. At press time, the meme currency was valued at $0.22 which meant that the coin rose by 16% almost over the last day. It has been a relief for DOGE as the coin seems to have broken off its sluggish price movement ever since the SNL event.
It is vital to see if the alt manages to hover around this price level over next trading sessions. With the Parabolic SAR’s dotted lines below the candlesticks, an uptrend could be expected.
DOGE for the first time in the month of July, went above the 70-mark on the Relative Strength Index, straight into the overbought territory. The demand for the coin shot up as prices rallied, the RSI was pictured in the overvalued and overbought zone.
Chaikin Money Flow had depicted a sharp increase in capital inflows at the beginning of July 26. Due to intra-day losses, the indicator fell again. However, at the time of writing, it experienced a small uptick suggesting capital inflows were more at press time.