ADA, MATIC And DOT Price Action For February 2
While ADA looks bullish, it will encounter several resistances which might hinder its bullish move for investors to make sufficient profits. Thus, investors might need to be cautious when investing in it. However, the MATIC price has slightly retraced below the 50-day EMA with a second successive day of gains.
The good news for investors is that its RSI also suggests bullishness. Like MATIC, DOT has also been bullish, especially in the last seven days. Intense buying efforts by the bulls is the leading cause of this bullishness.
ADA’s Impressive Price Action
As usual, altcoins follow BTC price action, and Cardano was no exception as it experienced a 40% price drop between January 20 and 22. Despite trading at sub-$1 levels following the crash, it failed to establish a candlestick close below that mark. However, ADA has recovered from this crash, gaining 25% so far and not showing signs of exhaustion yet.
Despite the impressive rally, several resistances along its way would prevent it from making a strong enough bullish movement. One of such resistances is the $1.26 price level which coincides with the 50-day EMA.
ADA 1-day chart. Source: TradingView
Intotheblock’s GIOM crypto analytics software also supports the analysis above that there is a cap to ADA’s bullish move. According to the software’s analysis, nearly 500k addresses with about 6.3B ADA holdings can summon enough buying intensity to push ADA price beyond the $1.26 price level.
Thus, it is likely that the bears will take complete control once the ADA price reaches that point. Another factor supporting the analysis above is the number of daily active addresses (data). This figure has reduced by nearly 11% from about 73,790 to 63,290 over the past 30 days. This decline in the DAA suggests that investors aren’t making any bullish moves for ADA at its current price. ADA trades at $1.08 as of this writing.
MATIC Sustains Bullish Momentum
Analysts attribute MATIC’s bullish move to the preference of the polygon blockchain over Ethereum in terms of scalability and efficiency. Despite setting a new peak price late last month, MATIC lost more than 50% to trade at new lows of $2.005 on January 24. While MATIC price was rejected at the $2 level, sellers are taking position around this range to take profits.
MATIC price 1-day chart. Source: TradingView
The Polygon native token will need a massive effort from the bulls to break out of its sub-$2 levels in which it has remained in the last ten trade sessions. Investors can take entry positions once the MATIC price is clearly over the upper boundary of the $2.003 price level. MATIC currently trades at $1.65.
DOT Is Bullish
DOT 24-hour chart. Source: TradingView
The intense buying efforts by the bulls have caused DOT’s price to surge to $19.67. The analysis from the 24-hour timeframe shows that if this buying pressure is sustained, a bullish crossover between the 20-day and 50-day EMA will likely happen.
The increase in volatility has led to a readjustment of the Bollinger bands to around $22. The upper and lower bands of the Bollinger bands are at $28.96 and $13.95, respectively.
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