Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Polkadot (DOT)
Polkadot DOT is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens, thereby making a wide range of blockchains interoperable with each other. Polkadot’s native DOT token serves three clear purposes: providing network governance and operations, and creating parachains by bonding. The Polkadot protocol connects public and private chains, permissionless networks, oracles and future technologies, allowing these independent blockchains to trustlessly share information and transactions through the Polkadot relay chain.
DOT Price Analysis
At the time of writing, DOT is ranked the 11th cryptocurrency globally and the current price is US$21.99. Let’s take a look at the chart below for price analysis:
DOT has retraced nearly 55% since its high in early January, showing little sign of interest from buyers.
February’s consolidation at possible support from $20.68 to $21.57 broke down with the rest of the market last week, turning this into likely resistance on future retests. This area now has confluence with the 9 and 18 EMAs.
If market conditions turn and this resistance breaks, an area near the midpoint of December’s consolidation range and the 2021 open, near $28.70, and the high of December’s consolidation range, near $32.88, might see profit-taking from bulls.
The first test of possible support near $17.40 showed some sensitivity. Still, continued bearishness in the market will likely cause a break of this level.
A break of this support might continue to drop to the next possible support near $15.37, running stops under July’s swing low.
If this level gives support and begins a consolidation forming a bottom, bulls might wait for a wick below to possible support from $13.16 to $10.47 at the high of 2020’s consolidation range.
2. Stellar (XLM)
Stellar XLM is an open network that allows money to be moved and stored. When it was released, the goal was boosting financial inclusion by reaching the world’s unbanked – but soon after, its priorities shifted to helping financial firms connect with one another through blockchain technology. The network’s native token, lumens, serves as a bridge that makes it less expensive to trade assets across borders. All of this aims to challenge existing payment providers who often charge high fees for a similar service.
XLM Price Analysis
At the time of writing, XLM is ranked the 30th cryptocurrency globally and the current price is US$0.2412. Let’s take a look at the chart below for price analysis:
XLM set a high near $0.4157 in November before retracing nearly 75% to find a low near $0.2080. The price consolidated around this level before the strong bullish impulse during the past several weeks.
Probable resistance near $0.2678 is slowing the bullish advance down. However, another leg might target the last swing high at $0.3022 and relatively equal highs at $0.3336. Resistance near $0.3659 could cap the move before the second swing high. Beyond these levels, little stands in the bulls’ way before reaching the swing high near $0.3926.
A retracement before a move higher might find support in the daily gap near $0.2143, just above the monthly open. Relatively equal lows near $0.1975 could also provide support. Run-on stops at $0.1816 and $0.1731 might find support in the gap beginning near $0.1670 or a high-timeframe level near $0.1520.
3. IOTA (MIOTA)
IOTA is a distributed ledger with one big difference: it isn’t actually a blockchain. Instead, its proprietary technology is known as Tangle, a system of nodes that confirm transactions. The foundation behind the platform says this offers far greater speeds than conventional blockchains – and an ideal footprint for the ever-expanding Internet of Things ecosystem.
IOTA Price Analysis
At the time of writing, IOTA is ranked the 47th cryptocurrency globally and the current price is US$1.03. Let’s take a look at the chart below for price analysis:
After a 70% decline during January, IOTA has ranged between $0.9533 and $0.8203.
The recent rally is approaching probable resistance near $1.25 – but could be aiming for stops above the relatively equal highs near $1.20. Continuation of the bullish move could target the daily gap near $1.35.
Aggressive bulls might add to positions near $1.00 and $0.9844. Price action near $0.9340 may be more likely to provide support – if the price reaches it – during any retracements.
Relatively equal lows clustered around $0.8935 seem likely to be swept if the bearish trend resumes. If this move occurs, the price might find support at the significant higher-timeframe level near $0.8255.
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Where to Buy or Trade Altcoins?
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
