Altcoins such as Polkadot, IOTA, and Verge curtailed gains over the past 24 hours, after Bitcoin’s move above $38,000 was once again rejected. With the DOT heading towards the $21.4 support, IOTA was attempting to revisit the 23.6% Fibonacci level. On the other hand, XVG has made solid gains but has yet to break the strong resistance zone of $0.0383 to $0.0433.
While the conflict between Polkadot and Ethereum remains a major topic of discussion within the community, looking at their charts, DOT seems to have a healthy correlation with its larger rival. DOT’s movement was capped below $30 as Ethereum failed to rise above its upper ceiling around $3,000.
Yesterday’s correction saw the DOT lose the $24.5 support and the bulls have yet to regain the lost ground. Harder losses in the coming hours could indicate that the coin has dropped to $21.4 support, where a return can be expected. Any attempt lower than this level will likely be covered in the demand zone between $13.6 and $16.
The RSI formed lower lows and pointed to some weakness as it will focus on the multiple support levels highlighted on the 12-hour time frame. The MACD line has moved below the Signal line as the market belongs to the bears.
IOTA successfully defended the 23.6% Fibonacci level ($1.14) from a drop, but this level is still on the agenda. Selling pressure was evident on the Squeeze Momentum Indicator and a series of red bars would see it go further south on IOTA’s 4-hour chart. A drop at $1.14 could call back sellers at $0.93 on the defensive line.
Meanwhile, the EMA values can act as additional support and counter another drop. The crossover between EMAs seemed to indicate a bearish reversal in the IOTA market. A bullish result could see IOTA toppling the 38.2% level ($1.44) and trending above the 50% level at $1.67.
A 26% jump in the last 24 hours indicated that the bulls are dominating the Verge market. Backed by strong volumes and buying pressure, XVG continued its uptrend despite yesterday’s correction as focus shifted to various resistance lines on its 4-hour chart. The first major resistance zone is located between $0.0383 and $0.0433 – an area that triggered XVG’s mid-April bull run. Interestingly, this area also coincided with the 200-SMA (green).
An increase above this zone could trigger a 25% increase, but such an event was highly unlikely. The RSI showed overbought conditions as XVG needed to reset before the next upgrade. This could happen at the $0.031 support. However, bullish momentum was forming in the Awesome Oscillator for a stronger price swing.