Like it or not, people want higher returns on their investments. Rightly so, altcoins have provided similar opportunities to many. Now, what you don’t hear are the stories from those who were trying to catch a falling knife. The total crypto market capitalization excluding Bitcoin (BTC) and Ethereum (ETH) also referred to as the altcoin market cap has been registering new lows after losing more than 70% from its all-time high. The altcoin market cap currently stands at $297 billion. In today’s edition, we will look at the overall altcoin market and price patterns of major altcoins.
Cardano (ADA) seems to have begun a price recovery and the price is nearing the 20-day EMA at $0.26. For swing traders, the 20-day EMA is an important level to keep an eye on. If buyers overcome this obstacle, the ADA/USDT pair could rise to the breakdown level of $0.29. Overall, things are not looking great for ADA as it is already 91% and with BTC looking weak, another drawdown is very much on the cards. If the price once again turns down from the 20-day EMA, it will suggest that bears are active at higher levels.
Polygon (MATIC) slipped below $0.75 on Dec. 30 but the bears could not capitalize on the advantage. MATIC climbed by 2.3% in the last 24 hours. The bulls are trying to start a relief rally on the back of partnerships with big companies. If the price turns down from this resistance, it will suggest that higher levels are attracting selling by the bears. That could increase the likelihood of a drop to $0.70. On the other hand, if bulls drive the price above the moving averages, the MATIC could rally to $0.90.
Dogecoin (DOGE) broke and closed above the $0.07 support. DOGE has been making constant progress for the past couple of days. The bulls purchased at lower levels and pushed the price back above $0.065 on Dec. 30. The buying picked up further on Jan. 2 and the bulls are trying to strengthen their position. If they can pull it off, the DOGE could challenge the resistance near $0.08. A break above this level could trigger stop losses of aggressive bears, resulting in a short squeeze.
This positive view could be negated if the price turns down from the current level and breaks below the intraday low made on Dec. 30. The pair could then decline to the pivotal support near $0.05.
While altcoins like MATIC have shown impressive strength over the course of bear market, it doesn’t mean it can hold selling pressure in the future. As we have seen the altcoin market trend, it could go possibly lower as BTC dominance continues to move sideways. We can expect the altcoin market to be choppy until the bear market is over and it is better to refrain from buying an altcoin dip.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.