August showed a particularly challenging start for 'US-based' cryptocurrencies in the market. Trading activity decreased as investors rushed to realize profits from July's strong rally. During the past week, the global cryptocurrency market capitalization dropped by 5%, indicating reduced demand and an overall market cooldown.
Amid this downturn, some 'US-based' tokens are drawing attention for their potential to reverse the trend. Here are three altcoins investors should focus on this month.
Omni Network (OMNI)
OMNI rose by 72% last week. This reversed the market decline recorded over the past seven days, making it one of the US-based coins to watch during the first trading week of August.
The daily chart's Moving Average Convergence Divergence (MACD) indicator setting confirms an upward bias for the altcoin. Currently, OMNI's MACD line (blue) is positioned above the signal line (orange).
The MACD indicator identifies price movement trends and momentum. It helps capture potential buy or sell signals through crossovers between the MACD and signal lines.
When the MACD line is above the signal line, as with OMNI, it indicates upward momentum. Traders view this setup as a buy signal.
If accumulation continues, the token could break through $4.60.
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Conversely, if demand decreases, the token's price could drop to $3.83.
Story (IP)
Currently trading at $5.71, IP has risen 24% over the past three weeks. This has established it as another US-based coin to watch in early August.
The daily chart of IP/USD shows the altcoin is trading within an ascending parallel channel since July 11. This chart pattern is formed by drawing two upward trend lines connecting the asset's higher highs and higher lows, indicating a continuing upward trend.
IP is currently positioned near the lower line of the ascending channel. If this support level holds and accumulation increases, the altcoin could reach $6.46 in the short term.
IP Price Analysis. Source: TradingView
However, a clear downward break of the channel's support line could invalidate the bullish setup, potentially triggering a steeper decline to the $4.92 area.
Zebec Network (ZBCN)
ZBCN rose almost 30% over the past seven days, making it one of the altcoins to watch in the first week of August.
On the daily chart, the token's Smart Money Index shows a steady upward trend, emphasizing continued support from major token holders. At the time of writing, it is positioned at 1.
The asset's SMI tracks the activity of experienced or institutional investors by analyzing market behavior between the first and last trading hours. A declining index suggests selling activity from these holders, indicating expectations of price drops.
Conversely, as with ZBCN, a rising indicator suggests increased buying activity. If demand continues to grow, the token's price could break through $0.0053.
Meanwhile, if buying pressure flattens, the token's price could drop to $0.0047.
