cryptocurrencies remain undecided. Just when you think you’re starting to gain bullish momentum, you turn bearish. First week of January was bearish, last week we saw a reversal to the upside while this week so far has been bearish again. polka dots and Litecoin showed some bullish momentum last week, but both have failed at the 50-day SMA and are reversing today.
Polkadot continues to make lower highs
Polkadot’s goal is to provide a scalable platform for decentralized global apps. This is done through parachains and has the first five parachain-Auction winners launched, namely Acala, Moonbeam, Parallel Finance, Astar and Clover. This will bring the Polkadot network higher cross-chain interoperability and many projects mainly related to decentralized finance (DeFi) that has received a lot of attention in the last two years. Moonbeam has already been successfully launched on Polkadot.
This means that the network will increasingly have real-world use cases, increasing demand for the DOT coin. However, Polkadot has been bearish since early November after the cryptocurrency market fell. Over the past two months, the pace of the decline has slowed, but DOT/USD continues to make lower highs and the 50 SMA (yellow) on the daily chart has turned into a solid indicator of resistance.
The price has turned back this week but the support around $22 looks like a good place to buy this cryptocurrency. If the bearish momentum holds, then summer support at $10 is the ultimate level.
Litecoin reverses at 50 SMA
LTC falls below the $140 support again
Litecoin has also been showing downward pressure since November after a failed rally from $200 to $300. It was unfortunate that the crypto market turned bearish at the time and LTC gave back all gains as it slipped to $120. Last week we saw a bullish reversal that continued yesterday as the market turned bearish, but the negative sentiment in the market continues today and LTC/USD has also turned bearish.
We’ve seen some bullish data from Santiment showing positive on-chain metrics as the number of whales accumulated on LTC longs. Hopefully, the MimbleWimble upgrade will garner enough attention that it will help Litecoin turn bullish. But for now, it remains near the $140 support.
Source: Crypto News Deutsch