Category: Polkadot

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 11^th cryptocurrency globally and the current price is US$16.89. Let’s take a look at the chart below for price analysis:

DOT has retraced nearly 71% since its high in early November, showing little sign of interest from buyers.

December and early January’s consolidation at possible support from $21.68 to $23.57 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 $27.70, and the high of December’s consolidation range, near $30.88, might see profit-taking from bulls.

The first test of possible support near $16.40 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 $10.37, 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 $7.16 to $5.47 at the high of 2020’s consolidation range.

2. LooksRare (LOOKS)

LOOKS is the token powering LooksRare, the community-focused NFT marketplace that actively rewards traders and creators for participating. One hundred percent of LooksRare’s platform trading fees are earned by LOOKS token stakers: a rewards model created in direct response to the previous generation of NFT marketplaces whose fees mostly reward a single entity. Users earn LOOKS tokens by trading NFTs on LooksRare, staking LOOKS, which also earns WETH fees, and more.

LOOKS Price Analysis

At the time of writing, LOOKS is ranked the 2830^th cryptocurrency globally and the current price is US$3.56. Let’s take a look at the chart below for price analysis:

The 173% surge in LOOKS has retraced 54%, with no high-timeframe levels and low-probability market conditions offering little insight into where a longer-term bottom may form.

The price broke through, then consolidated, near possible support around $4.12. This level is between the 61.8% and 78.6% retracement levels. The current bearish market conditions for more sellers increase the probability of this level breaking and turning to resistance.

An area between $3.44 and $3.28 has offered support twice – and could do so on a future retest. However, each test of a level tends to weaken its strength. 

If this level breaks, the last potential support shown in historical price action is near $2.75, where the rally began on January 11.

A shift in market conditions could prompt a rally to $4.55, where an inefficient region and multiple highs create a tempting target for bulls. A more substantial rally could continue to another inefficient zone on the daily chart near $5.28, possibly spiking into a daily level near $5.86.

3. WOO Network (WOO)

WOO Network is a deep liquidity network connecting traders, exchanges, institutions and DeFi platforms with democratised access to best-in-class liquidity and trading execution at lower or zero cost. WOO Token is used in the network’s CeFi and DeFi products for staking and fee discounts. Presently, a diverse set of products and services interfacing retail, institutions, CeFi and DeFi have been built: WOO X is a zero-fee trading platform providing professional and institutional traders with best-in-class liquidity and execution. It features fully customisable modules for workspace customisation.

WOO Price Analysis

At the time of writing, WOO is ranked the 110^th cryptocurrency globally and the current price is US$0.5441. Let’s take a look at the chart below for price analysis:

WOO has retraced 74% from its November highs and is currently challenging possible support near $0.5240, between the 61.8% and 78.6% retracement levels. 

If this level fails to provide support, the 78.6% retracement, near $0.4401, offers a strong draw for shorts with multiple daily swing lows and an inefficient area. 

Continued bearish conditions may cause this level to break, running all swing lows since March 2021 into the upper portion of an inefficient region starting near $0.2100. Near the midpoint and bottom of this region, lower timeframes show that $0.1320 and $0.0440 could also provide some sensitivity.

The low of early December’s consolidation, near $0.6517, and the 9 EMA may provide some resistance on any retracements. A continued rally – unlikely unless the overall market’s catalysts drastically shift – could reach over the 2021 open to $0.9727 and possibly $1.1400, where the daily chart shows a head-and-shoulders formation.

Learn How to Trade Live!

Join Dave and The Crypto Den Crew and they’ll show you live on a webinar how to take your crypto trading to the next level.

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. You can also buy these coins from different exchanges listed on CoinMarketCap.

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. Fantom (FTM)

Fantom FTM is a directed acyclic graph (DAG) smart contract platform providing decentralised finance (DeFi) services to developers using its own bespoke consensus algorithm. Together with its in-house token FTM, Fantom aims to solve problems associated with smart-contract platforms – specifically transaction speed, which developers say they have reduced to under two seconds.

FTM Price Analysis

At the time of writing, FTM is ranked the 30^th cryptocurrency globally and the current price is US$2.20. Let’s take a look at the chart below for price analysis:

FTM‘s 174% bounce from the December low ran into resistance near the old all-time highs. This rejection created a set of relatively equal highs near $3.15, possibly forming the next bullish leg’s target. Until then, the price will likely encounter resistance near $2.86.

Currently, the price is testing possible support near the January open, around $2.28. This level also has confluence with the 78.6% retracement of the current local range and the 18 and 40 EMAs. 

If this level fails to provide support, a zone from $1.90 to $1.71 might mark a possible swing low or consolidation area. This zone is between the 61.8% and 78.6% retracement of December’s swing.

A more bearish tone in the market could propel the price lower. The December lows, near $1.19, might mark an area of possible support as well as a bearish target.

2. The Sandbox (SAND)

The Sandbox SAND is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralised autonomous organisations (DAOs) and non-fungible tokens (NFTs), the Sandbox creates a decentralised platform for a thriving gaming community. The Sandbox employs the powers of blockchain technology by introducing the SAND utility token, which facilitates transactions on the platform.

SAND Price Analysis

At the time of writing, SAND is ranked the 38^th cryptocurrency globally and the current price is US$4.37. Let’s take a look at the chart below for price analysis:

SAND‘s impressive 1192% rally during Q4 halted at $8.48 before retracing 51% of the move. This price action created several areas of possible higher-timeframe resistance in the process.

The price found resistance on its last swing upward near $6.72 – an area that could provide resistance again. If this swing high breaks, the price might find resistance near $7.51. If this area does provide resistance, it would suggest the formation of a higher-timeframe consolidation.

The fast move up left little higher-timeframe support. However, a vast zone between $4.12 and $2.45 has provided support before and could give support again on a retest. This zone is between the 61.8%-to-78.6% retracement levels of Q4’s parabolic move.

Inside this zone, the consolidation high near $3.58 to $3.19 might see more sensitivity and mark the bearish target.

Continuation downward through this level, especially if the overall market remains bearish, could retrace most of Q4’s move to the next higher-timeframe support near $1.44.

3. 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 10^th cryptocurrency globally and the current price is US$23.77. Let’s take a look at the chart below for price analysis:

DOT has remained between approximately $24.76 and $31.25 since its retracement from November 2021.

Continual retests of the $22.34 level might signify that the price is ready to run to the larger range’s lows – particularly if traders dump their holdings following the recent Bitcoin price crash. 

If this move down occurs, a broad zone from $21.56 to $19.84 may provide support. The upper portion of this zone may see more sensitivity.

Continued bearish market conditions could prompt continuation down through the level. If so, the next higher timeframe area of interest for bulls is likely near $17.96.

The 9, 18 and 40 EMAs, near $27.52, might provide resistance before running the range lows. This area has confluence with multiple swing highs and lows. 

However, the current proximity to the local range low could prompt a move toward the range highs. If so, $29.44 might be the near-term target for bulls. Before entering, traders might wait for confirmation that one direction is more likely to unfold.

If the overall market becomes more bullish, the price could continue through the local range highs. If so, a zone from $31.76 to $35.81 – particularly the lower half – could see profit-taking from bulls.

Learn How to Trade Live!

Join Dave and The Crypto Den Crew and they’ll show you live on a webinar how to take your crypto trading to the next level.

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.