Just as the bulls initiated to alter the market-wide sentiment, the 5 January sell-off bolstered the bearish outlook. As a result, Polkadot fell below its 20-50-200 SMA and poked its four-month low while Shiba Inu lost the vital 61.8% Fibonacci support.
Moreover, VeChain had to let go of the critical $0.076-mark five-month support (now resistance).
Polkadot (DOT)
TradingView, DOT/USDT
DOT’s rising wedge (white) incline of nearly 17.76% (from 30 December low) halted at the long-term bearish trendline (green). Then, the 22.75% retracement snapped off the 20-week support at the $24.31-level. Consequently, the alt touched its four-month low on 8 January.
Now, the immediate hurdle for the bulls stood at the 20-SMA (red) as they initiated a down-channel (yellow) breakout over the past day. In terms of the strength of its trend, the Volume Oscillator marked lower peaks during the recent fall. This reading hinted at a weak bearish move.
At press time, DOT traded below its 20-50-200 SMA at $24.68. The RSI moved sideways but stayed below the half-line. Also, the Squeeze Momentum hinted at a low volatility phase.
Shiba Inu (SHIB)
TradingView, SHIB/USD
The recent falling wedge (yellow) breakout found it difficult to breach the $0.00003405-mark as the alt sought the highest liquidity near this area for nearly the past six months.
Over the past four days, SHIB oscillated between two parallel lines heading south (white). After a substantial 5 January sell-off, SHIB bears flipped the vital $0.00002914-mark 11-week support to its resistance.
Consequently, SHIB lost 61.8%, 78.6% Fibonacci supports. Now, the testing point for the bulls stood at the upper channel, followed by the 20 SMA (cyan).
At press time, SHIB traded at $0.00002831. The RSI saw a jump after a bullish divergence with price action. But it failed to cross its 42-level resistance. Also, the Squeeze Momentum indicator hinted at a low volatility phase. Further, the OBV was in descent and confirmed the decreasing buying pressure.
VeChain (VET)
TradingView, VET/USDT
After ensuring the five-month support at $0.076-mark (now resistance), VET saw a rising wedge (green, reversal pattern) on its 4-hour chart.
The alt has been on an aggressive decline after poking its $0.1 month-long resistance. As a result, it saw a 30.18% decline (from 27 December high) until 8 January. Now, the $0.0727-mark support stood strong for potential reversals.
At press time, the alt traded at $0.07622. Since the broader sell-off, the RSI failed to cross the midline. The MACD histogram depicted an increasing buying pressure. But its lines were still under the equilibrium.
