The market leader’s inability to sustain key support levels has cost a bunch of cryptocurrencies dearly. As Polkadot tests the $23.11 support, the DOT bulls need to sustain it to prevent a possible breakdown. Also, MANA has lost the key level of $2.7 at press time.
Although Terra managed to secure the 61.8% Fibonacci level, it shows a bearish bias.
Polkadot (DOT)
Source: TradingView, DOT/USDT
DOT has marked lower highs above its downtrend line (green) for the past two months while testing the 5-month support at $23.11. This movement shows that selling pressure is gradually increasing.
The recent bearish channel break (yellow) has recovered from the 20 SMA (red) as it has been a strong resistance this past week. Now, the alt can retest the $23 mark and continue to find short-term resistance at $24.3. The Squeeze Momentum indicator continues to show a period of low volatility.
At the time of writing, DOT is trading at $23.55. The RSI look south as it tries to retest the oversold zone. It would only make sense to assume a short-term downside move from here while -DI (red) looks north.
Terra (LUNA)
Source: TradingView, LUNA/USDT
LUNA saw a 99.96% special channel rally (from Dec 14 low) until it hit ATH on Dec 27.
Over the past week, the alt has seen an expected rising wedge (green) broken on its 4-hour chart. This replacement marks a staggering 31.67% drop in a bearish channel (white). But it found strong support at the 61.8% Fibonacci level.
Now, LUNA has seen a bearish V-top on the 4-hour chart as it lost the 50% level. The 20-SMA (red) continues to act as a strong resistance. Any subsequent breakdown will find testing support at $66.9.
At press time, LUNA trades 34% lower than ATH at $68.18. The RSI has seen a steep reversal from the midline and is not showing any signs of short-term resurgence. Meanwhile, Supertrend continues to issue sell signal.
Decentraland (MANA)
Source: TradingView, MANA/USDT
On its 4-hour chart, alt saw a break from the falling channel until the two-month support of $2.7 (currently resistance). But with Samsung step into the Decentraland metaverse, the token was up 22% on January 6.
However, it succumbed to a broader sell-off by shortening the previous jump in the bearish channel (white). It also reduced its intra-month range between $3.92 and $3.02. Now, the immediate support is at the lower trend line of the channel.
At press time, MANA trades at $2.7632. The RSI dropped below the midline and once again found resistance at 42. Furthermore, DMI appeared a preference for discounts. But ADX shows a slightly weak directional bias towards alt.