shortcut (CRYPTO: LINK) and Speckle (CRYPTO: DOT) are down 13% and 30%, respectively, from their all-time highs Bitcoin’s (CRYPTO: BTC) Withdrawal into consolidation.
Given the soaring popularity of cryptocurrencies recently, the Link and Polkadot downturn may just be a much-needed cool-down as both charts are still flashing bullish signals.
The Polkadot Diagram: Last Saturday, Polkadot hit its all-time high of $ 50.70 on its Kraken stock exchange debut on August 18, 2020. The cryptocurrency failed to hit it and has since had two levels of support at $ 42.18 and $ 37.55 lost and support ricocheted off near the $ 32 mark. However, the lower wicks on the daily chart indicate that bulls are buying dips in polkadot.
Although the downturn caused the eight-day exponential moving average (EMA) to fall below the 21-day bearish EMA, Polkadot printed a bullish hammer candlestick on Tuesday, indicating a reversal in the downtrend. A push up above $ 37.55 would help Polkadot regain and trade above the eight-day EMA.
Cops want the hammer reversal pattern to continue and for Polkadot to bounce back over his overhead resistance. If Polkadot is able to get back to the $ 36 level, it has room to move back up to $ 42.
Bears want the bullish hammer pattern negated and Polkadot put up a bear flag pattern under $ 36. If the bear flag becomes the more familiar pattern, the stock could retest the support at $ 31.87. A loss of this level of support could result in Polkadot revisiting $ 27.78
The link diagram: Although Link is trading near its all-time high of $ 44.34, the last three trading days have created a new level of resistance at $ 39.07 as the cryptocurrency has not traded above it. Like polkadot, the daily candles have long lower wicks, indicating that cops are buying a dip.
Link trades above both the eight-day and 21-day EMA, with the eight-day EMA being above the 21-day EMA which is bullish.
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The bulls want Link to jump above the $ 39 level for a rebound to all-time highs. If it can clear $ 44.34, blue skies are ahead. The more often Link tries to break his overhead resistance, the weaker the resistance becomes.
Bears want Link to continue rejecting $ 39 and dropping back to $ 34.87. If Link fails to maintain this level of support, it could fall further to $ 29.58.
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