As the crypto fear and greed index is just five points below the ‘Neutral’ sentiment, the crypto market sees a decent recovery.
Consequently, Ethereum saw a much-awaited jump above the $4,000 mark but displayed a weak directional trend. On the other hand, Dogecoin consolidated and DOT crossed the 50-SMA while flashing bullish technicals.
Ethereum (ETH)
Source: TradingView, ETH/USDT
As mentioned in the previous article, ETH saw an expected trend reversal after forming a month-long falling wedge. It saw a 10.41% incline in just six days. As a result, ETH crossed the $4000-level after retesting that mark four times. Over the past few days, It formed a symmetrical triangle on its 4-hour chart. Now, to confirm the bullish strength, the alt will need to cross the $4,100-mark on increased volumes.
Even though the bulls reclaimed the $4000-mark, ETH witnessed a bearish divergence between the price action and the RSI (blue trendline).
Any further breakdown would find a testing point around the 20-50 SMA in the demand zone. At press time, ETH traded at $4,039.01. The RSI breached the 59-mark for the first time since 1 December, indicating an increased bullish influence.
Although OBV was in an uptrend for the past week, it did not match the previous levels at the $4000-mark. Further, the decreasing volumes on the volume oscillator affirm that ETH bulls could not gather enough buying pressure.
Dogecoin (DOGE)
Source: TradingView, DOGE/USD
DOGE retraced more than its previous bull run as it lost half of its value over the last 54 days.
This pullout ensured the 23.6% Fibonacci resistance as the price struggled to leap the $0.175-level. Moreover, the 50-SMA (blue) stood just below the above mark and ensured an immediate testing point for bulls.
After a descending triangle (green) breakout, DOGE found an oscillating range between the $0.162 and $0.182-mark. At press time, DOGE traded at $0.1723. The RSI saw a 20 point surge in two days and jumped above the equilibrium, depicting a bullish bias. Although the DMI displayed a marginal bullish bias, the ADX was substantially weak.
Polkadot (DOT)
Source: TradingView, DOT/USDT
Like DOGE, DOT bears over-retraced its previous bull run in an up-channel (white) as the token lost its 16-week previous support at the $26-mark. In the past few days, bulls retested the above channel (green) multiple times until DOT witnessed a down-channel breakout on 21 December.
Thus, the Supertrend finally flashed a green sign after mostly wavering in the red zone. Now, as the bulls crossed the 50-SMA (blue) hurdle, the immediate resistance stood at the $26-level. DOT bulls will need to gather increased volumes to initiate a trend-altering rally.
At press time, the alt traded at $26.11 after noting a 5.97% 24-hour gain. The RSI was northbound after a staggering 34 point surge over two days. Further, the DMI reaffirmed the bullish vigor, but the ADX displayed a slightly weak directional trend for the token.