The Crypto markets are reacting to the news positively, and the latest report suggests that the crypto markets have surpassed the traditional US banking industry.
It is common for cryptocurrencies to react sharply to the positive news in the market. But it is to be seen, what is the direction it will follow for the next quarter. This article focuses on the technical price analysis of Polkadot(DOT) and Chainlink(LINK)
Technical Price Analysis of Polkadot(DOT)
Polkadot has broken its previous ATH and has hit a new ATH of $46.85 on April 3, 2021. This event occurred after the announcement of Enjin raising $19 Million to build Polkadot based NFT Blockchain.
At the time of this analysis, the price was pivoting near the $44.58 mark with a 2.61% jump in 24 hours. DOT boasts a market capital of $41.16 Billion and the sudden increase in the volume of Polkadot of above 20.69% in trading volumes, with the value reaching $3 billion in the last 24 hours.
With increased trading volumes, it is almost certain that prices will hit the $50 mark if there is no additional bear pressure. 926,075,357 DOT are in circulation, out of 1,062,099,471 DOT, indicating that the markets are more active than ever.
MACD levels indicate bullishness along with the parabolic SAR. RSI levels are closing 45 indicating a good overhead for price action. The prices are holding up above the upper levels of the Bollinger band, if they sustain at the same levels for a couple more trading sessions and no selling pressure, there will be a buying spree.
Also, there is a chance for breakdown to take support at the ascending line in case the breakout does not hold above the resistance levels.
Resistance levels: $46.7, $50
Support Levels: $44, $43.5, $42.3
Chainlink(LINK) Price Analysis
Chainlink has been trying to break out of previous highs, but have faced resistance and rejections. LINK has been on an accumulation stage for a month after hitting ATH levels. LINK had set an ATH record of $37 on February 20, 2021, and what followed was a consolidation phase due to selling pressure. It is again rising above $30 and has shown the intent to form new levels on the upper side.
With the current price of $32.17, Chainlink boasts a market capitalization of $13.43 Billion. The value of the total volume of transactions surpassed $1.7 Billion in the last 24 hours.
Looking at the 30-minute candle chart, it is evident that the Link is trying to break the resistance at $32.53 but is unable to do so. Resistance along with the Higher Highs should be broken to see a bullish momentum. But the candles could not form above the resistance levels of $33.
There is a good support level at $31.3 and $30.74 levels. There is a possibility of good consolidation at the same levels. In case the support levels get broken, there are additional support levels at $30.4.
Apart from the trends, the Bollinger band is indicating the potential for strong momentum according to the price action. The Relative strength index also suggests the same, lying between 50 levels. The currency falls at a phase where the price action can run the bull run or bearish fall.
Fibonacci levels indicate that the value of Link is trading at a strong 0.76 level. Hence it is speculated that if the market wants to break its ATH levels, it has to consolidate at around the current price levels of $32.
There is also a chance of a breakdown due to the loss of volumes. However, this fall can get support at $28.
Support Levels: $31.3 and $30.74
Resistance Levels: $32.5 and $33
MACD: Moderate to Bullish