Polkadot, IOTA, Compound Price Analysis: 08 September
Polkadot invalidated a possible bearish pattern in the past few sessions. At press time, it lacked momentum in both directions. IOTA was indicating signs of short term bullishness and could surge past nearby resistance level. Compound showed a likelihood to drop in price, perhaps as far as $152 in the near term.
Polkadot formed what looked to be a cup and handle pattern, but didn’t play out so.
Directional Movement Index showed a lack of a strong trend. This could mean that DOT would consolidate within a range. ADX (yellow) was below 20, showing that the trend at the time of writing was not a significant trend.
It is possible that the price oscillates between support at $4 to resistance at $4.84 in the coming days as the market decides its next direction.
The asset blitzed its way into the top 10 cryptocurrencies with a market cap of $3.58 billion at press time. The rapid rise can be put down to a redenomination event the token’s community agreed upon.
IOTA dropped past resistance at $0.29 and has tested the same level multiple times in the past few days.
IOTA was forming a rising triangle, with one side at the resistance level of $0.29 level. The rising trend of the past few days, highlighted by the white trendline, formed another side of the triangle.
This pattern could be validated if price retested the trendline and surged upward, past resistance at $0.29 region.
RSI showed a neutral value of 47. The higher lows that RSI, alongside price, has been making showed that this uptrend could result in price reclaiming resistance at $0.29.
Stochastic RSI showed overbought conditions had persisted over the past few days, as COMP rose in price. With the next level of resistance nearby, at $187, it is likely COMP gets rejected at resistance if it tests resistance.
The price rise has been accompanied by a decrease in volume as well, shown by the white trendline. This reinforced the idea that price is due for a correction. In this context, the price might be forced to visit support at $152 region once again.
Compound continued to hold rank 7 on DefiPulse, with a total value locked of $597 million. Its TVL has slipped by nearly $170 million in the past week, yet other DeFi tokens also lost a proportionate amount in TVL, leading to no change in COMP’s ranking.