Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Polkadot (DOT)
Polkadot DOT is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens, thereby making a wide range of blockchains interoperable with each other. Polkadot’s native DOT token serves three clear purposes: providing network governance and operations, and creating parachains by bonding. The Polkadot protocol connects public and private chains, permissionless networks, oracles and future technologies, allowing these independent blockchains to trustlessly share information and transactions through the Polkadot relay chain.
DOT Price Analysis
At the time of writing, DOT is ranked the 11th cryptocurrency globally and the current price is US$16.89. Let’s take a look at the chart below for price analysis:
DOT has retraced nearly 71% since its high in early November, showing little sign of interest from buyers.
December and early January’s consolidation at possible support from $21.68 to $23.57 broke down with the rest of the market last week, turning this into likely resistance on future retests. This area now has confluence with the 9 and 18 EMAs.
If market conditions turn and this resistance breaks, an area near the midpoint of December’s consolidation range and the 2021 open, near $27.70, and the high of December’s consolidation range, near $30.88, might see profit-taking from bulls.
The first test of possible support near $16.40 showed some sensitivity. Still, continued bearishness in the market will likely cause a break of this level.
A break of this support might continue to drop to the next possible support near $10.37, running stops under July’s swing low.
If this level gives support and begins a consolidation forming a bottom, bulls might wait for a wick below to possible support from $7.16 to $5.47 at the high of 2020’s consolidation range.
2. LooksRare (LOOKS)
LOOKS is the token powering LooksRare, the community-focused NFT marketplace that actively rewards traders and creators for participating. One hundred percent of LooksRare’s platform trading fees are earned by LOOKS token stakers: a rewards model created in direct response to the previous generation of NFT marketplaces whose fees mostly reward a single entity. Users earn LOOKS tokens by trading NFTs on LooksRare, staking LOOKS, which also earns WETH fees, and more.
LOOKS Price Analysis
At the time of writing, LOOKS is ranked the 2830th cryptocurrency globally and the current price is US$3.56. Let’s take a look at the chart below for price analysis:
The 173% surge in LOOKS has retraced 54%, with no high-timeframe levels and low-probability market conditions offering little insight into where a longer-term bottom may form.
The price broke through, then consolidated, near possible support around $4.12. This level is between the 61.8% and 78.6% retracement levels. The current bearish market conditions for more sellers increase the probability of this level breaking and turning to resistance.
An area between $3.44 and $3.28 has offered support twice – and could do so on a future retest. However, each test of a level tends to weaken its strength.
If this level breaks, the last potential support shown in historical price action is near $2.75, where the rally began on January 11.
A shift in market conditions could prompt a rally to $4.55, where an inefficient region and multiple highs create a tempting target for bulls. A more substantial rally could continue to another inefficient zone on the daily chart near $5.28, possibly spiking into a daily level near $5.86.
3. WOO Network (WOO)
WOO Network is a deep liquidity network connecting traders, exchanges, institutions and DeFi platforms with democratised access to best-in-class liquidity and trading execution at lower or zero cost. WOO Token is used in the network’s CeFi and DeFi products for staking and fee discounts. Presently, a diverse set of products and services interfacing retail, institutions, CeFi and DeFi have been built: WOO X is a zero-fee trading platform providing professional and institutional traders with best-in-class liquidity and execution. It features fully customisable modules for workspace customisation.
WOO Price Analysis
At the time of writing, WOO is ranked the 110th cryptocurrency globally and the current price is US$0.5441. Let’s take a look at the chart below for price analysis:
WOO has retraced 74% from its November highs and is currently challenging possible support near $0.5240, between the 61.8% and 78.6% retracement levels.
If this level fails to provide support, the 78.6% retracement, near $0.4401, offers a strong draw for shorts with multiple daily swing lows and an inefficient area.
Continued bearish conditions may cause this level to break, running all swing lows since March 2021 into the upper portion of an inefficient region starting near $0.2100. Near the midpoint and bottom of this region, lower timeframes show that $0.1320 and $0.0440 could also provide some sensitivity.
The low of early December’s consolidation, near $0.6517, and the 9 EMA may provide some resistance on any retracements. A continued rally – unlikely unless the overall market’s catalysts drastically shift – could reach over the 2021 open to $0.9727 and possibly $1.1400, where the daily chart shows a head-and-shoulders formation.
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Where to Buy or Trade Altcoins?
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia. You can also buy these coins from different exchanges listed on CoinMarketCap.
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