Polkadot was consolidating on the charts at the time of publication, after reaching a new ATH on April 1. Indeed, the price of DOT has recently fallen by more than 10%, with increased trading volume indicating that DOT could be sold off on spot markets shortly. In reality, traders expect the price to fall to March 2021 lows, far below $30.
Furthermore, according to trader opinion on exchanges, Tether’s introduction on DOT has been unimpressive, helping the price reversal in the short term. Despite the fact that Tether is key to the cryptocurrency industry, its launch on DOT has not been as well received as anticipated.
The previously reported rise in trading volume may be due to additional selling on the network and cannot be solely attributed to Tether’s announcement. This is notwithstanding the fact that the arrival of Tether is likely to result in the DOT hosting more DeFi applications on its network in the long run.
Based on the attached Liquid supply curve, rising liquidity seemed to be predictive of a price reversal.
XLM is another top altcoin that is now consolidating. At the beginning of 2021, XLM has reached a high of $0.54, and as far as the price rally is concerned, with a roughly 36% reduction in trading volume across markets, XLM’s price rally could have come to an end. As a result, the altcoin could be in the buy zone right now, particularly given that the cryptocurrency has remained mostly rangebound between $0.35 and $0.45 based on market action from February to March 2021.
The short-term ROI for XLM has been as follows:
According to the attached table, the short-term ROI for XLM is in the double digits for periods longer than 30 days. Every 30-90 days before the consolidation starts, XLM HODLERS are lucrative.
Similarly, the price of TRX has consolidated every 40-60 days. The commodity is now trading at $0.119 as of press time. With the alt over 60% from its all-time high and a decrease in 24-hour volumes, the altcoin may soon be in the purchase zone.
FIL, like TRX, XLM, and DOT before it, is in the purchase zone for retail traders at $148.52. Following a 40% decline from $232 on 1 April 2021, HODLers could now be stockpiling for the next step of FIL’s market period. Both FIL and TRX are altcoins that consolidate every 40-60 days.
With top altcoins that have gained double digits in the last two weeks in the buy zone, this may be a perfect moment for retail traders to buy and add to demand on spot exchanges, preparing for the second step of the altcoin price rally.
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