Bitcoin is trading within the support and resistance zones defined in our previous reviews. Let’s explore the market dynamics of cryptocurrencies Polkadot (DOT) and Maker (MKR) as of Friday, October 20.
Polkadot (DOT)
On October 19, Polkadot marked its lowest price for the year at $3.56. Both the global and local trends for DOT lean bearish, with sellers maintaining significant pressure on its price.
Currently, DOT has witnessed a modest recovery from its support range between $3.56 and $3.64, marking a local 5% price increase. This upward shift is primarily attributed to the BTC price elevation, considering their tight correlation.
If the BTC positive trend endures, DOT might attempt to approach the sellers' territory between $3.8 and $3.9, potentially ascending towards the resistance of $3.95 and approaching the $4.00-$4.10 area. Still, these fluctuations appear within the context of a broader bearish trend. For a genuine ascent, DOT needs to stabilize above the $5 mark.
Identifying lower support levels is challenging since the asset hasn't dipped this low previously. However, if the $3.56-$3.64 range is breached, a new all-time low of around $3.5 might be in the cards.
DOT chart on the H4 timeframe
Maker (MKR)
MKR consistently shows positive momentum on both global and local scales. On September 29, it hit an annual high of $1,590. After reaching this peak, there was a slight pullback, but this didn't deter the bullish sentiment.
Currently, Maker is trading between the support levels of $1,322-$1,377 and faces resistance in the $1,468-$1,511 range. The prevailing trend suggests a continuation of its upward movement. Beyond the current resistance, the next target is $1,550. If this upward momentum maintains, MKR could break its yearly high of $1,590 before the year ends.
A temporary dip is conceivable, potentially driving the asset down to between $1,212-$1,272, or even to the $1,130 mark. However, even if this decline materializes, the overall bullish outlook remains intact. Many Maker investors would likely view such a downturn as a chance to accumulate more at an advantageous rate.
MKR chart on the H4 timeframe
Traditionally, cryptocurrency market volatility tends to decrease over the weekends, and we anticipate a similar trend this time.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. 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 price movement 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 GN Crypto:
