NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Dogecoin's (DOGE) Golden Cross Potential, Bitcoin's (BTC) $70,000 Comeback, Solana's (SOL) Big Breakthrough Ahead

Published 07/28/2024, 08:30 AM
Updated 07/28/2024, 01:45 PM
© Reuters.  Dogecoin\'s (DOGE) Golden Cross Potential, Bitcoin\'s (BTC) $70,000 Comeback, Solana\'s (SOL) Big Breakthrough Ahead
BTC/USD
-
DOGE/USD
-
SOL/USD
-

U.Today - Riding the wave of market optimism sparked by Bitcoin's recent surge past $68,000, Dogecoin is beginning to show signs of recovery. A potential golden cross, one of the most important technical indicators, is approaching, and Dogecoin has been attempting to break through significant resistance levels as Bitcoin has taken the lead in this market rally.

A short-term moving average crossing above a long-term moving average causes this phenomenon, which usually indicates a turn in the direction of bullish momentum. Dogecoin is currently trading close to the 100 EMA, a significant level that, should it cross, may indicate that the recent death cross-related bearish sentiment is ending.

A short-term moving average crossing below a long-term moving average, which previously happened, is known as a death cross and suggests that a significant downtrend may be on the horizon. But this story could be turned around by the market's current upbeat attitude.

Dogecoin is currently testing the resistance of the 100 EMA after trading above the 200 EMA, according to a technical chart analysis. If this level is broken, it may lead to a golden cross in which the 50 EMA crosses above the 200 EMA, confirming the bullish trend and possibly sparking a long-term price increase.

With 77% of DOGE holders currently profiting at the current price points, on-chain data lends credence to this upbeat assessment. The substantial concentration of major holders shows that important market players are still interested in and supportive of the situation. Bullish indicators from the network's on-chain metrics also point to growing network activity, which frequently occurs before price increases.

Bitcoin moves to $70,000

Bitcoin is currently consolidating around $68,000 and is poised for a larger price rebound. The significance of this level lies in the possibility that a push toward $70,000 and a longer-term price reversal could follow if it is broken.

It is impossible to overstate the significance of this $68,000 cutoff. It acts as a significant resistance level, and breaking through it might trigger a new round of buying pressure and send Bitcoin soaring. A possible breakout that may herald the beginning of a bullish trend is what traders and investors are keeping a careful eye on at this level.

But you also need to take into account the technical indicators that are active. A possible crossover is suggested by the convergence of the 50-day and 100-day exponential moving averages (EMAs).

A bearish signal also known as a death cross may be observed if the 50 EMA crosses below the 100 EMA. This could potentially halt the upward momentum and result in increased selling pressure. The market is still cautiously optimistic despite the imminent danger of a death cross.

The psychological $70,000 mark would be the next target for Bitcoin if it were to successfully break past the $68,000 resistance. By attracting more institutional investors and retail traders, reaching this milestone could accelerate the price rally. It could be possible for Bitcoin to reach and even surpass its all-time highs if there is a persistent increase above $70,000.

Solana slowly retracing

Solana is consolidating at approximately $185, a pivotal point that may result in a substantial breakthrough. Breaking above this level, which has shown to be a potent resistance point, may pave the way for the continuation of the longer-term upward trend.

This stage of consolidation suggests that traders are keeping a close eye on the next move. Solana's more ambitious $200 target might become attainable with a successful breakout above $185. Psychologically speaking, this level might draw in more customers and raise the price even further. It is noteworthy though that there isn't a lot of trading volume at the moment. Sometimes, this drop in volume suggests a possible reversal.

Solana's price may drop before making another attempt at a breakout if the buying pressure does not pick up. Although traders should monitor the volume as it can offer additional insights into the future course, the market sentiment is still cautiously optimistic.

This content was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.