The cryptocurrency market is like a sea of bloody waters after losses ensued during the weekend session. Stability has been ousted from the market, hinting at continued widespread retracements. Bitcoin is heading back to the support at $33,000 while Dogecoin (DOGE) and Polkadot (DOT) are the worst hit in the top ten.
Dogecoin lost the support at $0.3 last week, allowing bears to swing into action powerfully. The following tentative support at $0.28 failed to hold the price as Dogecoin explored the rabbit hole to $0.25.
A reflex recovery stalled at $0.28 while losses gained momentum. At the time of writing, Dogecoin trades at $0.26 and may retest the support at $0.25 or $0.24 before a formidable recovery comes into the picture.
The downtrend is supported by most of the short-term technical indicators, such as the Relative Strength Index (RSI). This technical tool follows the trend of an asset and calculates the strength of the bulls or bears. As the RSI dips under the midline, the bearish outlook is validated.
DOGE/USD four-hour chart
Polkadot is back to trading under the crucial support at $20. Last week the token hit highs of $26.5, but bulls couldn’t sustain the uptrend. The reversal that followed was accentuated by widespread losses across the crypto market in the weekend session.
Meanwhile, the least resistance path is downward based on the Moving Average Convergence Divergence (MACD) indicator. Realize that crossing into the negative region was a bearish signal. Moreover, bears grew stronger as the MACD line moved beneath the signal line.
At the time of writing, Polkadot has revisited the levels under $20 and trades at $19.20. If the technical outlook remains unchanged, investors can expect another dip toward the support in May at $14.5.
Despite the path with minor hurdles being on the downside, reclaiming the ground above $20 would call more bulls into the market. The uptrend will also be emphasized by the MACD line (blue) crossing above the signal line and the entire indicator moving into the positive region.