After Bitcoin’s defeat at $20,000, the altcoin market had to follow the negative momentum. The new assays point to new bases for Polkadot, Ethereum and Solana.
Polkadot price in decision phase amid sideways movements
Polkadot price witnessed a 21% pullback mid September 10 and 13. Meanwhile, its price dropped from $7.77 to $6.19. After this sudden downtrend, a period of calm started in a sideways rectangular formation. All price action as a whole defines the “bear flag” pattern. This technical formation shows the continuation of the bearish trend with an increase of 21% if the base of the flag at roughly $6.19 is broken.
The base price objective of the formation is determined by adding the height of the flagpole to the breaking point and by assuming it without error. Accordingly, the ultimate goal for the Polkadot price is $ 4.88. Despite these idealized goals, analyst Akash Girimath recommends watching closely the $5.40 reinforcement level, where buyers have a good chance of stepping in and attempting to turn it down.
Regardless of the drop in the charts, investors should also keep a close eye on the Bitcoin price. Market participants should be cautious as BTC is also potentially bearish. If Bitcoin price triggers a reversal, Polkadot price will follow the market. In such a case, a daily candlestick above $6.48 will create a higher high (HH). Thus, it will invalidate the decline thesis for the DOT. This move could turn into a rally if the bulls make a strong comeback and maintain their momentum. In such a case, according to the analyst, the next aim of the DOT will be to test the resistance level at $ 6.86.
Leading altcoin could explore lower levels
While highlighting the correlation of altcoins with Bitcoin, it is also worth paying attention to Ethereum. Ethereum price registered a daily candlestick close below $1,297 on Oct. This triggered the breaking of a bear flag. This technical formation includes a big sell called the flagpole. This is followed by a tight, yet upward-facing consolidation called the flag.
The 15% crash mid-September 17 and 21 created a flag in ETH price. This model predicts the flagpole height to reach $1,100, a 15% drop added by the $1,297 breakout point. A break of the $1,280 support level will trigger this decline. It will lead Ethereum price to $1,080, which is the midpoint of the $1,282-878 range. However, given the bearish trend of Bitcoin price, there is a risk that the price will drop further. We could see ETH break the $1000 spiritual level and drop into the triple-digit zone.
Conditions for Ethereum price are not always bleak. The rapid recovery in Bitcoin price will make things easier for ETH investors. If Ethereum price surpasses $1,338, this will invalidate the drop with a higher top. Such a development would suggest that the bulls are strengthening to take the bullish $1,440.
Solana price may continue to drop
Solana price shows new reasons for lower levels. Last month witnessed a drop of 22 in the wake of a bull trap. A volume flow emerged during the September drop. Thus, he implied that the bears are in control of the trend. Now, on Monday, October 10, the bears formed a spike along a trendline that provided reinforcements for Solana price throughout September.
Solana is currently trading at $32.112 as the bears produce a steep drop to start the second week of October. SOL price gained momentum over the weekend as the bulls were rejected from the 8-day EMA. The RSI is currently in very oversold conditions, pointing to the potential for a short-term bounce, which will likely be short-lived.
Under these circumstances, FXStreet analyst Tony Montpeirous says Solana will lose its $30 foothold in the coming days. Such a move would ultimately result in an additional 7% drop.
The bulls must pass the September 12 high of $38 to invalidate the bearish thesis. Following this, an additional bullish rally will occur, targeting the $44 liquidity levels. The price action in question will result in an 18% rally from the current Solana price. Koindeks.comAs you follow, Solana is currently trading at $31.47.