The cryptocurrency market has been bullish since late July, but some of the cryptos have been extremely bullish. Polkadot was one of them, as it increased more than 500% until early this month, while Fantom has increased more than 2,000%. They have been retreating lower recently, together with the crypto market, but still remain quite bullish so let’s see if this latest pullback period is opening up some nice buying opportunities in these cryptocurrencies.
Fantom Daily Chart Analysis – The Retreat Looks Weak
Fantom had formed a nice bullish pattern since July, as the previous highs kept turning into support after every bullish move. FTM/USD formed support after support at $1, $2, and $2.50. Moving averages have helped keep the trend bullish as well and this pair peaked just below $3.50 by the end of October.
Since then, Fantom has pulled back lower, bouncing off the latest support at $2.50 initially, but then it fell right through it and broke the 50 SMA (yellow) as well on the daily chart. The second support at $2 was also broken but the 100 daily SMA (green) held as support and the price bounced more than $0.50 higher, climbing above $2 again.
The price has retreated in the last 2-3 days but the retreat has been very slow, suggesting that the selling pressure is not strong and buyers should return anytime now, resuming the larger bullish trend. Fantom has more than $5 billion locked in snd more than 750k transactions per day, being one of the fastest-growing networks. So, buyers are in a good position in Fantom and those who are out can get in now, since this looks like a good place to go long.
Polkadot Daily Chart Analysis – DOT Finding Support at the September’s High
The pullback is complete on the daily chart for Polkadot
Polkadot’s first parachain auction was won by Acala which raised $1.35 billion in its token ICO (initial coin offering). The next parachain auction is live with Moonbeam in the winning spot so far, so the interest for Polkadot parachians is high, which has been keeping DOT coin in demand and DOT/USD bullish.
The 20 SMA has been acting as support during August and October, which indicated that the trend was strong. Although this retreat has taken the price down to the bigger moving averages and they are helping provide support, together with the high zone from September around $40. DOT/USD is now oversold and is looking like it is about to reverse higher, so it is not a bad idea going long around here, which we might do soon.