The cryptocurrency market is currently witnessing a rise in alternative digital currencies (altcoins), with an approximate 5% increase, while Bitcoin (BTC) is attracting investors at prices close to its highest levels. The market is currently experiencing a balance between fresh investments and the sell-off of profits, a common scenario that usually precedes a market correction, but it’s uncertain if this pattern will hold true in the current situation. Critical pricing zones for three well-known cryptocurrencies are worth observing.
Dogecoin’s Market Activity
Dogecoin (DOGE) has seen a 6.85% surge, trading above $0.086, with potential resistance at $0.1 and $0.11 if the upward trend maintains. The meme-inspired cryptocurrency has struggled with demand in recent months and is noticeably missing the promotional influence of entrepreneur Elon Musk. A downward trend could see DOGE revisiting the $0.8 support level.
Chainlink Faces Resistance
Chainlink (LINK) encounters selling pressure around the $20.85 region, strengthening resistance there. Currently bought at $20.3, LINK may continue its ascent despite recent profit-taking by investors after weeks of gains. A sustained uptrend might push LINK past the resistance line, targeting $21.79 and $25, provided it stays above $20.85. A bearish turn, however, could bring the price down to $17.32 or lower if it falls below $18.09.
Polkadot Overcomes Resistance
Polkadot (DOT) has recently surpassed a significant resistance at the 50-day SMA, now trading above $7.28, which could invalidate the head and shoulders (H&S) pattern and pave the way for an increase toward $8.58. A reversal, on the other hand, would require a bearish push below $7.08, potentially leading to a support level test at $6.
The broader market’s performance, especially Bitcoin’s stability, is crucial as it could channel more capital into altcoins, supporting their continued rise. This trend appears to apply across the majority of alternative cryptocurrencies.
