The crypto market is trading green with minimum volatility. BTC trades above $51K, ETH strides above $4K. Leaders of the race however are DOT, ATOM, and UNI with 10+% gains.
A well-known crypto analyst and trader is revealing potential breakout possibilities for Polygon (MATIC), Polkadot (DOT), and VeChain (VET)
Analyst Justin Bennett says he’s keeping an eye on the price of Polygon, a scaling solution aimed to facilitate widespread adoption of decentralized apps on the Ethereum (ETH) blockchain, in a new strategy session.
MATIC is trading within an ascending channel, according to the crypto trader, and must break through a severe resistance region to continue its advance.
He notes that whenever a market is testing an all-time high while also carving higher highs and lower lows, it is theoretically a bullish structure. However, one must note that $2.70 is a confluence of resistance, which means it will be a very significant level that MATIC must break above on a daily closing basis in order to turn that area into support, he added.
According to Bennett, a strong move above $2.70 on the daily chart might drive MATIC to a price range of $4 to $4.50.
At the time of writing, MATIC is trading at $2.88 up by 8.5% in the last 24 hours. The resistance is at $2.92 and the support is at $2.6 going further.
Polkadot is the next project on the list. It connects multiple blockchains into a single network, allowing users on different blockchains to send and receive transfers of any kind of data or asset.
To reverse its bearish trend, DOT must retake a crucial price level, according to Bennett.
He explains that the only way to reverse a downtrend, which is just a sequence of lower highs and lower lows, is to reverse the trend in the opposite direction — that is, higher highs and higher lows. So we need to see the market break the trendline, move up to $31 to $32, close above that, switch the trendline to support, and then advance into $38, he added.
At the time of writing, DOT is trading at $31.52 up by 10.4% in the last 24 hours. The resistance is at the 24 hr high of 31.98 and the support downside is at $30.
The fourth coin on Bennett’s list is VeChain (VET), a supply chain management platform that he believes is poised for a major breakout next year.
The scenario he is toying with right now is the possibility that VET has developed this triangle pattern here over the course of the year. Hence, VET stays over $0.07, maybe barely above it, this may play out. We might simply see a market that consolidates in this manner here, rises, retests resistance ($0.15), and then breaks out in 2022, he added.
At the time of writing, VET is trading at $0.096 up by 4.2% in the last 24 hours. The resistance on the upside is at $0.12 and the support in case of fall is at $$0.092.