Bitcoin remains within the bounds of previously identified support and resistance levels. Dive into the market conditions for the cryptocurrencies Polkadot (DOT) and Avalanche (AVAX) on Wednesday, October 4.
Polkadot (DOT)
Both global and local trends on the Polkadot chart remain bearish. Presently, the asset is trading in a range, bounded by the support level of $3.90-$4.00 and a resistance zone between $4.28-$4.40. The current sentiment leans towards further decline. Identifying the exact point where buyers might re-enter is tricky, especially since the cryptocurrency recently marked a yearly low at $3.91.
In a shift from this trend, the next key resistance lies at $3.8. For a transition from a bearish to a bullish trend, DOT must breach this range and secure a position above both the $4.5 mark and the $4.7-$4.85 zone. This outlook remains uncertain given Bitcoin's ambiguous movements and the broader market sentiment towards it.
Additionally, it's worth noting that a significant volume of DOT tokens will be unlocked from parachain auctions in the coming months. If not re-staked, many of these might flood the market, possibly driving the DOT price further down.
DOT chart on the H4 timeframe
Avalanche (AVAX)
Much like Polkadot, Avalanche continues to exhibit a downward trend. On September 25, AVAX recorded its yearly low, rebounding from the $8.6-$8.9 support zone and subsequently establishing a tentative buying zone around $9.1.
The immediate range of resistance lies between $9.7-$10.1. Beyond this, there's another resistance zone at $10.6-$11.0, followed by the $11.4 mark. These thresholds must be surpassed to pave the way for a bullish momentum. The strong correlation between AVAX and Bitcoin suggests that the current trajectory is likely to persist as a downturn.
If the $8.6-$8.9 barrier is broken, we might see buyer activity around the psychological level of $8.
AVAX chart on the H4 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNcrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
