Polkadot, Aave, Dogecoin Price Analysis: 15 December
Polkadot refused to dip beneath $4.6 and appeared to be on another attempt at recovery as it sailed past $5. Aave could reach the $100 mark in the coming days as it saw a steady wave of buying but was trading within a bearish reversal pattern. Dogecoin was consolidating above a level of support.
For the crypto markets most dominant currency Bitcoin the past 24-hours saw its price increase by over 1 percent and was trading at $19306 at press time.
Polkadot ascended past the $4.8 level with strength. The Directional Movement Index showed a strong uptrend on the 4-hour timeframe, with the ADX (yellow) well above the 20 discretionary value traders use to filter for significant trends.
The +DMI (blue) was also soaring alongside, to show the bullish nature of the trend.
The price broke past the $5 level apace at the time of writing and based on the session close and the trade volume garnered, there would be a good likelihood of $5.2 resistance being tested and possibly flipped to support over the next few hours as the Stochastic RSI was not yet in the overbought region.
In related news, Bitfinex added Polkadot as collateral in its peer-to-peer digital token lending/borrowing platform, Bitfinex Borrow.
In the short-term, AAVE was in an uptrend with a region of supply at $94. The price was trading within an ascending channel. A candle close beneath the channel could see the price drop to $74 support.
However, the OBV showed steadily rising buying volume to back AAVE’s ascent and there was no wave of selling yet to spark a drop. The RSI also retested the neutral 50 and rose upward to denote an uptrend.
On the longer time-frame, the strength of AAVE’s movement upward has decreased. This is to be expected and is a natural part of the market cycle, and it remains to be seen if $100 will be breached before an eventual correction occurs.
Dogecoin consolidated above the $0.0031 level of support. The Bollinger bands were relatively close around price. The Bollinger bands width indicator also showed the width was decreasing.
Further sideways trading was likely for DOGE in the coming days. A breakout on strong trading volume can be used to place a trade in the direction of the breakout.
According to CoinMarketCap, the daily trading volume has hovered around $35 million for DOGE over the past few days, compared to near $170 million it saw on consecutive days when it surged to $0.0042 in late November.