3 Cryptocurrencies To Watch Today
Support has formed at the $40 level for Polkadot (DOT-USD).
The chart shows what is a common occurrence in the financial markets: Levels that had been resistance can convert into support. It happens because of seller’s regret.
Investors who sold their DOT at $40 in February and March were feeling good when it trended lower after. They think they made the right decision to sell.
But in early April, DOT broke this level and made a significant move higher. Now, these investors aren’t so sure. Many come to think they made a mistake.
A number of these regretful sellers decide to buy their DOT back, but they will only do so if they can buy it for the same price they sold at. Then they can erase their mistake.
As a result, they place their buy orders at their previous selling price. If there are enough of these buy orders, the level will convert into support. This is the case here with the $40 level.
A similar dynamic may occur in Cardano (ADA) at the $1.35 level. This level was resistance in February and March.
If a stock or a cryptocurrency is in a downtrend, there is a good chance it will end at a price level that had previously been resistance.
A major reversal pattern has formed in cryptocurrency XRP (XRP). The recent uptrend has ended and a new downtrend may form.
On the following chart, the blue rectangles are up days; On these days the bulls were in charge.
The red rectangles are down days; On these days the bears were in control.
The large red rectangle for today’s price action shows a significant move lower. XRP has dropped from $1.80 to $1.55.
The bulls have been in control of XRP since April 5, when it was trading around 65 cents. But today’s action could mean the bears may be about to take over.
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