Polkadot (DOT), Avalanche Crypto (AVAX) Break Support as Selling Picks up Again
Cryptocurrencies reversed down again this week, after retracing upwards last week, and the decline is accelerating as the week progresses. Bitcoin has broken below $40,000, while Ethereum has fallen below $3,000. This goes in tandem with the selloff in tech companies’ shares in the stock market, which have been crashing recently.
Does this have to do with coronavirus wearing off, which means that there won’t be any more major trillion-dollar stimulus programs from governments, while central banks turn increasingly hawkish as inflation surges everywhere? Whatever the reason, Avalanche and Polkadot have accelerated their retreat, having broken below some decent support levels today.
Avalanche Coin Breaks Below the $80 Support Zone
Avalanche was showing very strong bullish pressure from August until late November, even as the crypto market turned bearish early in November. The price surged from around $10 to $146, with moving averages acting as support, particularly the smaller moving averages, which confirmed the strong bullish momentum. It even made a decent bounce in December, moving above $130, but the bearish momentum in the crypto market this month has weighed on AVAX too.
The support/resistance zone around $80 has been holding again this month, but today it has finally been broken. Avalanche is one of the most promising blockchains, attracting partnerships that should keep this coin bullish, but for now, the sentiment in the crypto market is extremely bearish, so we should wait for the end of this decline before trying to buy AVAX/USD. 1inch is heading to Avalanche, BitGo was adding Avalanche support too and Avalanche is adding the USDC. But, market sentiment is more important now, so we should wait and see.
Polkadot Breaks the Support Zone at $23
The 20 daily SMA pushing Polkadot below the support area
Polkadot has been progressing in recent months, after auctioning off the first five parachains, with Moonbeam being the first to go live. The smart contract is compatible with Ethereum, and it is fully operational already. So, Polkadot is becoming increasingly functional, with real-life use-cases which is good for DOT coin.
But, the sentiment is pulling this cryptocurrency down with it, and it is has been bearish since early November, when it reversed at $56. This support zone held well for about a month, but it broke today as well, and now DOT/USD is heading for $20. Polkadot is another promising blockchain, so we are following the price action here as well, to see where we can buy, so follow us on our live crypto signals page.
Polkadot Coin DOT Live Chart
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