The market value of cryptocurrencies has surpassed $ 1.4 trillion and has surpassed the global giant Google.
See to: Elon Musk may have to pay billions fine
Among those responsible for the increase are Dogecoin, Cardano, Polkadot and Bitcoin.
However, while the flow of positive news and rising prices in most cryptocurrencies can give the impression that the bullish race will never stop, traders should be careful because each bullish phase witnesses periodic corrections.
The above opinion is from trader and crypto specialist Rakesh Upadhyay. He scored some high and low scenarios for some of the major cryptocurrencies on the market.
According to Upadhyay, Dogecoin, Cardano and Polkadot have the potential to rise in the short term. On the other hand, he said he did not believe that a rally that could "pump" the price of these cryptocurrencies.
Dogecoin can go up
In the case of Dogecoin (DOGE), the analyst said that volatility has decreased. Thus, it resulted in successive patterns of internal candles in the last three days.
As the trader explained, this suggests that bulls and bears are not making big directional bets.
So, if that uncertainty resolves and turns to the positive side, bulls can push the price above the $ 0.0875 overhead resistance. Thus, the upward trend can be resumed, with the next target at $ 0.102412 and then $ 0.13.
"Contrary to this assumption, if the price falls below $ 0.0625, the DOGE / USD pair could initiate a deeper correction that could reach the 20-day EMA ($ 0.44)," he said.
Cardano at $ 1 is the dream
In the case of Cardano (ADA), the expert pointed out that the cryptocurrency is witnessing a vertical rise. As you noted, this move pushed the price of the digital currency to $ 0.88871889.
Thus, according to him, this upward movement in recent days has pushed the relative strength index (RSI) into overbought territory.
Therefore, Upadhyay warned that the first support on the downside is the 38.2% Fibonacci retracement level at $ 0.6646150. Then the 50% retracement level at $ 0.5958618.
In other words, if the price rebounds, it would suggest that bulls continue to look for buying opportunities in the falls. Then, they will try to resume the upward trend and raise the price to the psychological level of $ 1.
“On the contrary, if the bears sink the price below US $ 0.5958618, the correction may deepen for the 20-day EMA (US $ 0.51)”, he highlights.
Polkadot advances further
Finally, on Polkadot (DOT), the trader noted that crypto remains in an upward trend. However, the momentum is weakening.
In this sense, he pointed out that the graphics point out that there is an indecision between bulls and bears.
Therefore, if the uncertainty resolves on the downside and the price remains below $ 22, the DOT / USD pair could fall to the $ 19.40 support.
“This is an important level to keep an eye on. That's because a break below it could pull the price down to $ 14.7259 ”.
On the other hand, if the price rises from the current level or $ 19.40, it will suggest that traders continue to buy the declines. If bulls can resume the bullish trend, the pair could rise to $ 30.
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