366 Interactions, 4 today
Through most of April, the dominant trend has been set by the market’s altcoins, with much of the industry’s cryptos soaring up the charts amid Bitcoin selling within a narrow range. However, in the hours leading up to print, the equilibrium seemed to have tipped back to zero, with BTC’s corrections fueling a crypto-market bloodbath of sorts. With the world’s largest cryptocurrency falling below $56,000, Polkadot, Synthetix, and DigiByte quickly followed.
Polkadot, the cryptocurrency ranked seventh on the charts at press time, has seen a significant increase in value since the March 24th and 25th pullback, as has the rest of the altcoin industry. In reality, DOT has recently climbed high enough to set a new ATH on the charts. However, its bullish momentum was short-lived, with the alt falling by nearly 15% in the last 36 hours due to Bitcoin-fueled corrections.
It was too early to tell how far DOT would fall at the time of writing, particularly because it had already surpassed its immediate support level.
Polkadot’s technical indicators were also bearish, with the Parabolic SAR’s dotted markers just above the price candles but the Awesome Oscillator’s histogram blinking bearish signals.
It’s worth remembering that DOT Futures Open Interest recently surpassed $1 billion, coinciding with the above ATH.
SNX, like Polkadot before it, has declined dramatically in recent trading sessions, with some arguing that its depreciation has become even more pronounced. As a result, Synthetix was found to have lost half of its value for the month, with the altcoin seeming to be headed towards its next support level on the charts.
Having said that, certain indications of bullish life were seen at press time, as demonstrated by the results of its technical indicators. Despite the fact that the Bollinger Bands’ mouth was pointed north, the Relative Strength Index reported a sharp uptick, indicating that some recovery was underway.
Synthetix made headlines a week ago after it announced the launch of staking on Optimistic Ethereum.
In contrast to fellow alts such as Polkadot and Synthetix, DigiByte’s chart downturn has been spread out over a few days, with DGB stalling as soon as Bitcoin failed to break the much-vaunted $60k-level. With the altcoin down by more than 18% in only a few days, it seemed unlikely that a pattern turnaround would occur anytime soon, particularly given BTC’s recent ambivalence.
The size of the bearishness in DigiByte’s market was highlighted by the alt’s indicators, as while the Chaikin Money Flow remained above zero, indicating that capital inflows retained a slender lead, the MACD line dropped sharply below the Signal line and the histogram.