The United States equities markets and the crypto markets are likely to remain volatile in the near term because traders remain nervous about the size of the next Federal Reserve rate hike on Sept. 20 and 21. While the
DOT/USDT
Polkadot (DOT) has been consolidating between $6 and $10 for the past few weeks. Usually in a range, traders buy the dips to the support and sell near the overhead resistance.
If the price rebounds off the $6 support with strength, it will suggest that buyers are accumulating on dips. That could keep the DOT/USDT pair stuck inside the range for some more time. The longer the price trades inside a range, the stronger will be the eventual breakout from it.
If buyers propel the price above $10, it will suggest that the downtrend could be ending. That could clear the path for a possible rally to the 50-week SMA ($19).
Contrarily, if the price slips below the $6 support, the pair could start the next leg of the downtrend. The pair could then drop to the $3.50 to $4 support zone.
MATIC/USDT
Polygon (MATIC) moved up sharply from $0.31 in June and broke above the 20-week EMA ($0.87) but the buyers could not extend the recovery. The bears stalled the relief rally at $1.05 and pulled the price back below the 20-week EMA.
The bulls again tried to thrust and sustain the price above the 20-week EMA last week but the bears did not relent. They sold aggressively and have pulled the price to the immediate support of $0.72. If this support breaks down, the MATIC/USDT pair could slide to $0.45 and then to $0.31.
On the contrary, if the price rises from the current level and breaks above the 20-week EMA, the pair could challenge the overhead resistance at $1.05. A break and close above this level will suggest that the downtrend may be over. The price could then rally to the 50-week SMA ($1.31) and after that to $1.75.
SHIB/USDT
Shiba Inu (SHIB) rallied sharply from its June low and rose above the 20-week EMA ($0.000013) in August. However, the breakout proved to be a bear trap as the price turned down from $0.000018 and slipped back below the 20-week EMA.
Even though the price has been trading below the 20-week EMA, the bulls have not allowed the SHIB/USDT pair to retest the June low at $0.000007. This indicates that buyers are attempting to form a higher low.
The first sign of strength will be a break and close above the 20-week EMA. The pair could then rally to $0.000018. If bulls drive the price above this resistance, it will suggest a potential trend change. The pair could then surge to $0.000030.
This positive view could invalidate if the price continues lower and breaks below $0.000007. That could sink the pair to $0.000005.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
