The sentiment in the crypto market has been quite positive during October, as Bitcoin broke above May’s high at $65,000. But today we saw a sudden reversal without much reason behind it. Although, this was more due to some profit taking after such a strong rally in cryptocurrencies and the pullback in Fantom shows that.
Fantom Daily Chart Analysis – Resistances Keep Turning Into Support
Fantom has been rallying hard, as the sentiment in the market remained bullish this month, while events in its front are coming one after another. This week is the first Fantom Developer Conference in Abu Dhabi, which has attracted immense attention in the industry, which has been another strong reason for the rally in FTM/USD.
The price of Fantom has increased from below $1 toward the end of September to almost $3.50 yesterday, gaining around $350% in value in a month. So, after such a strong climb it is time for some profit taking before the next round of buying this crypto coin. The positive thing is that the previous high around $2.50 has turned into support now, as the pattern of resistance zones turning into support continues. We are long on FTM/BTC and are keeping the trade on.
Polkadot Daily Chart Analysis – MAs Holding As Support
Has the decline ended at the 20 SMA?
Polkadot has also performed well since late July, increasing from around $10 to $47.50. The interest for the parachains in the Polkadot network is also quite high, keeping the sentiment bullish here, same as in Fantom, hence the bullish momentum.
But, instead of the previous highs turning into support for DOT/USD, here it has been moving averages to provide support and push the trend up. The 50 SMA (yellow) and the 200 SMA (purple) have held during deeper pullbacks, while the 20 SMA (gray) pushed the price higher when the trend is stronger. Today the decline stopped at the 20 SMA (gray), so the retreat might be over already. This might as well be a good opportunity to buy Polkadot and get in on the bullish side.