After Bitcoin was rejected above $58,539-resistance, the price moved back below $57K and ramifications of this move were reflected among certain altcoins.
XRP and ADA both posted minor losses, although the latter alt’s movement was within an ascending triangle. On the other hand, Dogecoin went against the broader market trend and traded in the green but gains were limited at $0.40-resistance.
Despite making losses over the last 24 hours, XRP maintained itself above $1.51-support on the 4-hour timeframe. However, this defensive line could be tested again over the coming sessions as momentum rested with the bearish side according to Awesome Oscillator. The same was highlighted by a bearish crossover in MACD.
If the AO moves below the half-line, support lines at $1.34 or even $1.17 could be called into action. In fact, a drop towards the latter support and the 200-SMA (green) could offer some long opportunities for traders. With the 24-hour trading volumes down by nearly 30%, volatility was escaping the market and some sideways movement could be possible if the present support is maintained.
Dogecoin’s movement over the last 24 hours was testament to the fact that its movement is not always correlated to Bitcoin. While BTC was down by nearly 2% at press time, DOGE managed to post gains of over 3% compared to yesterday. Moreover, with year-to-date gains of 6580%, DOGE has made a serious case for inclusion across top portfolios as an emerging altcoin. On the 4-hour charts, DOGE’s ascent was countered by some resistance present at $0.40, but it seemed like only a matter of time till this was surpassed by the bulls.
Squeeze Momentum Indicator showed rising momentum on the buying side. The momentum was supplemented by a 25% in the trading volumes, which almost touched $10 Billion. RSI did put DOGE in overbought territory and there was a chance of a minor pullback before the next leg upwards. This could take place at $0.33-support.
While Cardano dipped in the red territory along with the king coin, the price stayed within the confines of an ascending triangle and an upwards breakout was still expected from this pattern. Some skepticism arose from MACD’s fall towards the half-line, but the bulls were expected to counter this bearish movement. RSI floated below neutral-50 at the time of writing.
A breakout could be delayed over the coming sessions as the bulls gather strength for a northbound move. The $1.30 level must be monitored by traders, as a move below this point could lead to a breakdown from the triangle.