FX.co ★ ETH may approach $2,000; XRP tries to gain momentum; LTC keeps rising: analysis and prospects of altcoin market

On July 21, the market seemed rather quiet. BTC was moving sideways while ETH failed to break the $1,8000 level. However, at 16:00, the situation has changed dramatically. Bitcoin managed to form a double base and rebounded to the local support zone. Ether consolidated over the important level of $ 1,900. Other coins also showed a powerful rebound, gaining bullish momentum. DOGE added 15.5% and Polka dot grew by 12.5%, notching the highest rise. The total market capitalization increased by 6% to $1.3 trillion.

On the evening of July 20, the ETH/USD pair reached the $1,800 level. However, at the end of the day, it failed to consolidate above it. Therefore, on the morning of July 21, the cryptocurrency started trading near the indicated level and tried to resume a strong upward movement. The main driver was a sharp increase in BTC, which formed an important technical figure and bounced to the support zone. Ether took advantage of the BTC rally as bulls pushed the asset above the $1,800 level. During the day, the cryptocurrency broke two levels - $1,850 and $1,870. Shortly after, it began to consolidate under an important resistance level of $1,900. In just a day, the coin has soared by 9%. Judging by its trajectory, the quote is likely to undertake a new breakthrough. ETH may try to consolidate above the $1,900 level, which is the main resistance zone on the way to $2,000.

If it manages to break through this level and start trading from this level tomorrow, then the ether will face the next resistance level of $1,970. Analysts are sure that ETH is highly likely to break above the $1,900 level. On the 4H chart, the RSI indicator looks overvalued but gradually falls to 60. Although the MACD is below the zero line, it managed to form a bullish intersection. So, it is actively growing, which indicates significant support for a bullish breakout. Judging by technical indicators, the market positively reacted to the rebound of the cryptocurrency market. Given the positive news that has appeared today, there is every reason to believe that the ether will reach $2,000 in the next few days.

Litecoin's on-chain indicator continues to gain momentum. More and more unique addresses are connected to the altcoin and whales continue to buy up the asset. The upward momentum of the two main cryptocurrencies managed to push LTC and the coin broke the resistance level of $110. At 16:00, the asset was trading around $114 with a bullish bias. So, it grew by 0.8%. The 4H MACD indicator also shows its further growth. The chart formed a bullish intersection below the zero level and continues its upward movement. The RSI index demonstrates that the asset is a bit overbought but in the current situation, this is a positive sign. It means that demand for litecoin remains high. Litecoin may finish the trading day above the $120 mark. Given the growth of the coin, price consolidation will take place very quickly. It will allow LTC to try to break the support level of $130 on July 22.

Ripple also took advantage of the rally and managed to climb to the psychological level. The cryptocurrency started the current trading day hovering around $0.52. However, after a successful reversal of BTC and ETH, it managed to break through the resistance level. At 16:00, XRP was trading at $0.55 where it faced a strong resistance level, which does not allow the asset to reach $0.56. In just one day, it showed an increase of 6.5%. The hourly dynamic of price changes remains positive (+0.8%), and the RSI and MACD indicators show strong bullish momentum. The $0.6 mark prevents the token from breaking higher. If XRP fails to break through it in the near future, then it may lose its current bullish momentum. Taking into account the fact that the asset is fluctuating around $0.56. It is approaching $0.58. Yet, experts doubt it will be able to break through the level of $0.6.

The rebound of the cryptocurrency market and the powerful bullish movement of certain coins are associated not only with the BTC rally. Bulls also took the upper hand amid positive news in the crypto market. For example, today, on July 21, Silvergate Bank announced its plans to work with cryptocurrencies. Representatives of the bank also said about the creation of tools for the monetization of crypto assets. The company also shared impressive statistics. It showed that the deposits of cryptocurrency companies in Silvergate Bank reached $11.8 billion. The most breathtaking news was that the FTX crypto exchange attracted a record $900 million investment. Notably, the exchange works with derivatives. Thanks to a positive fundamental background, almost every coin managed to rise. So, the crypto market resumed its bullish momentum. If demand remains high, the crypto assets may break through strong resistance levels and establish long-term bullish trend.