… near term. The 20-day EMA ($0.62) is the critical support to watch on the downside. A break and close below this level will suggest that the bullish momentum has weakened and could result in a deeper correction to the 50-day SMA ($0.47).
Polkadot price analysis
Polkadot (DOT) has been in an uptrend for the past few days. The price reached $54.80 on Nov. 6, but the bears are likely to pose a strong challenge at this level.
DOT/USDT daily chart. Source: TradingView
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A pullback on Nov. 7 suggests that bears are attempting to disrupt the up-move, but the bulls are attempting to defend the 20-day EMA ($51). If they manage to do that and sustain the price above $54.80, it will improve the prospects of a retest of $60.
Conversely, if the price turns down and breaks below the 20-day EMA, it will suggest that the bullish momentum is weakening. The DOT/USDT pair could then slide to $47.47 and eventually to $40.
Aave price analysis
Aave (AAVE) has been trading inside a range between $282 and $411 for the past few days.
AAVE/USDT daily chart. Source: TradingView
Both moving averages are sloping up, and the RSI is near the overbought territory, suggesting that the bulls have the upper hand. The buyers are currently attempting to propel the price above $411. If they manage to do that and sustain the level, it will open the doors for a move up to $500.
Conversely, if the price turns down and breaks below the 20-day EMA, it will indicate that the bulls are booking profits. The AAVE/USDT pair could then drop to $340 and eventually to $282.
Uniswap price analysis
Uniswap (UNI) has been gradually moving higher for the past few days. The price reached $31 on Nov. 7, where the bears again stepped in to defend the up-move.
UNI/USDT daily chart. Source: TradingView
The bulls are currently attempting to propel the price above $31. If they manage to do that and sustain the level, it will indicate that the bulls are in no mood to wait for a deeper correction before buying. The UNI/USDT pair could then rally to $37. Moreover, $31 might act as a strong support level.
However, if the price turns down and breaks below the 20-day EMA, it will suggest that the bulls are booking profits. The UNI/USDT pair could then drop to $27 and eventually to $25.
In summary, the cryptocurrency markets face the risk of a near-term decline. The Bitcoin price seems to have stalled, and the open interest in Bitcoin futures is at a record high, suggesting that traders are preparing for a significant move. However, the long-term holders of Bitcoin are holding onto their coins, indicating that supply is tightening.
While the near-term outlook for Bitcoin may be uncertain, altcoins are showing signs of strength. Ethereum, Solana, Cardano, and a few others are in a strong uptrend.
But the cryptocurrency markets are always volatile and unpredictable. It’s essential for traders to keep a close eye on critical support levels and market sentiments to make informed decisions. As the saying goes, “Past performance is not indicative of future results.”
