Autor: dot-traders

Veröffentlicht am

Polkadot’s DOT bearish weakness to accelerate if $6.5 level fails to hold

  • Polkadot is regarded as the blockchain of blockchains.

  • Native token DOT has been bearish slightly above the $6.5 support.

  • If DOT breaks below $6.5, the price could fall further to $4.

Polkadot’s native token DOT/USD is trading at 6.73. The price is close to or at a support of $6.5, the lowest since January 2021. Although the price recovered to a high of $8.45 in recent weeks, it has since lacked a bullish impetus. Investors should watch $6.5 as it could be a turning point for DOT or start a further decline.

Polkadot is described as a “blockchain of blockchains.” It connects blockchains that would otherwise be incompatible with each other. It unlocks value by allowing data transfers across blockchains. In line with the goal, Polkadot launched a cross-chain messaging system in May. The system allows native transfers of tokens across parachains. Polkadot’s native token DOT allows staking and governance on the protocol. It is also available for trading in other exchanges.

Just like other cryptocurrencies, DOT has been highly volatile. It once traded at a high of $56 in November last year, at the height of the crypto boom. The recent crypto weakness means that DOT is yet to stage a lasting comeback.

 DOT risks another low if $6.5 support fails to hold

Source – TradingView

The MACD line closed below the moving average, signaling a bearish move for DOT. A RSI shows oversold conditions, but the price is yet to hit the support. More weakness in the price is expected as bearish sentiment prevails. A bullish reversal could occur at $6.5. Failure to reverse at the support would open DOT to further decline to a support around $4.

Summary

DOT/USD is bearish approaching a key support of $6.5. If the price fails to rebound at the support, the crypto token could proceed to $4. Investors should watch $6.5 for price action. Still, there is no indication the price will go higher at the support. Buyers should be prepared for further downside.

The post Polkadot’s DOT bearish weakness to accelerate if $6.5 level fails to hold appeared first on CoinJournal.

Veröffentlicht am

Does Solana’s token SOL have a bullish case after recent gains?

  • Solana’s SOL has recovered from the bottom of $32.

  • Solana is touted as an Ethereum killer, but frequent network issues are a concern.

  • Price is yet to find lasting bullish momentum as resistance at $42 keeps it lower.

As most cryptocurrencies trade at multi-year lows, price bottoms are perfect buying opportunities. Solana SOL/USD, one of the booming cryptos in 2021, trades at $32. The price is significantly below its all-time highs of above $250. The cryptocurrency traded at $42 some days ago, a significant jump from the lows of $26. Now, SOL seems to have been trapped below a resistance at $42. 

To see a lasting recovery in price, SOL needs to break above $42. Although the price seems to have broken above the downtrend, SOL remains bearish. The bear weakness in SOL emanates from the general market and the network’s shortcomings.

Solana is often touted as Ethereum’s killer. The labeling comes from its similarities to Ethereum while offering a more scalable ecosystem. The ecosystem also offers faster and less expensive transactions compared to Ethereum. The prior year’s gains underlined the trust that Solana had built in the blockchain industry. However, several hacks and network outages have accelerated SOL’s market weakness. Besides the sector weakness, Solana needs to address network issues to compete with Ethereum.

SOL technical analysis shows waning bullish momentum

Source – TradingView

On the shorter 4-hour time frame, SOL is under pressure after failing to break past $42. The weakness underlines the lack of directional move for the token. An RSI of 25 suggests the token is currently oversold. However, there is still room to move lower as the next support stands at $26. As long as the bear crypto market continues, SOL will remain trapped below $42. We cannot rule out a break below the $26 support.

Summary

Solana’s SOL is bearish. The token failed to break past $42 and is going lower. The next level to watch is $26, but the price can break lower.

The post Does Solana’s token SOL have a bullish case after recent gains? appeared first on CoinJournal.

Veröffentlicht am

What is the bull case for Request Network’s REQ as price pumps 58% in 24 hours?

  • Request Network powers payments through the blockchain

  • Request Network token gained 58% in one day 

  • REQ could crash as bearish signals emerge at resistance

Request Network’s token REQ/USD was the talk of traders on Thursday. The crypto-token posted impressive gains of 58.21% in 24 hours, according to Coinmarketcap. The total trading volume rose by 2,654% in the same period. The gains happen amid escalating crypto weakness, with Bitcoin sliding below $19,000. The total gains in the last 7 days were 64.25%. There was no immediate trigger for the robust gains. However, today’s gains make it worth exploring more about the protocol.

Request Network is a payment protocol for payment requests. It is built on the Ethereum blockchain and enables individuals to request payments. It is regarded as a bridge between the digital and physical world of payments. REQ is the native token that powers the network.

As the decentralization of finance continues to grow, the Request Network will grow. Since its launch in January 2021, the network has processed more than $203 million in crypto invoices. Metaverse giant, The Sandbox is one of the high-profile clients of Request Network. Other crypto projects such as MakerDAO, AAVE, and Chainstack also use the protocol.

REQ technical analysis

Source – TradingView

Technically, the REQ price suggests a parabolic move since June 29. The established resistance is at $0.128. Although the price broke past the resistance, it is crossing below it. This is the first signal that the price move could be unsustainable. The RSI also shows the price is retreating from an overbought level. The MACD line may be above the moving average to suggest a bullish momentum. However, overbought conditions and bearish pin bars at the resistance suggest downsides. Investors should seek to close positions and book profits now.

Summary

We recommend a sell of REQ as bearish signals emerge at key resistance. The lack of clear fundamentals driving the surge is also a red flag. Sell now to avoid a bull trap.

The post What is the bull case for Request Network’s REQ as price pumps 58% in 24 hours? appeared first on CoinJournal.