2 altcoins, which are among the top 10 by market cap, are giving strong technical bearish signals.
These 2 altcoins from Binance list show serious decline
One of the altcoins involved, Polkadot, demonstrates bearish techniques that long-term investors should know. The DOT price has rallied an impressive 60% since July 3. The continuation of the rally met resistance at 9.74, just under $10 in August. The resulting 30% drop suggests the start of a much larger impulse wave to the downside in the coming days, as the bulls failed to identify the macro invalidation point.
Polkadot is currently trading at $6.98, just above the June 26 bearish candle. Volume data is the most relevant consolidation signal despite the 60% rally over the summer. The bulls showed no retaliation comparison with previous bearish rallies. Additionally, the Relative Strength Index (RSI) has surpassed the supportive buyer zone in the most recent decline.
When the techniques are combined, the medium-term targets suggest a larger view to the downside at $4. The invalidation of the bearish thesis will occur once the bulls exceed $10. In doing so, we could see a bull run targeting $14 in the medium term. This means a rally resulting in a 100% increase from the current Polkadot price. The DOT is currently trading at $7.06, up 1.7% from the last 24 hours.
How is Solana price shockingly pointing to a $13 target?
Solana price exhibits disappointing specs until the last weekend of August. On August 13, Solana price rose to $46.50 in the crypto market, which many believe is the start of a new bull run. Using the fractal wave was necessary to qualify potential buy signals as an “unnecessary” risk. The bear fractal took off in full swing just a few days later. It then trapped the exiting bulls and fell in a free fall fashion.
Solana is currently trading at $31.50, 33% lower than where prices stopped just a week ago. While the drop is already quite devastating, if the fractal continues to rise, SOL price could drop as low as $13. Such a decrease would result in an additional 60% reduction from the current market value.
Therefore, Solana should stay on the list of high-risk altcoins until more charts claim otherwise. An invalidation of downtrend is possible with a break above $54 and candle close. If the bulls can break through this level, they could launch the Solana bull that everyone has been waiting for with bullish targets well above $200. Such a move would result in an increase of up to 3x from today’s market value.
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