The cryptocurrency market continues to navigate choppy waters, but analysts are spotting potential breakouts in some key players. Polkadot (DOT) and Fetch.ai (FET) are attracting attention, with analysts outlining bullish scenarios for both tokens.
Fetch.ai (FET): Finding Support and Charting a Course
Temitope Olatunji, a crypto analyst on TradingView under the username TheCryptoCity, has been tracking Fetch.ai (FET). The token has been trading sideways for the past few days after seemingly finding a bottom around $0.70. Low trading volume and a predominantly bearish candlestick pattern paint a picture of indecision.
However, TheCryptoCity identifies a glimmer of hope. He points out that FET is currently moving within a descending channel but has managed to bounce off the channel’s support zone, which conveniently coincides with a previously identified strong support area. This confluence creates a critical support level between $0.74 and $0.83.
The analyst’s chart suggests that if FET can muster the strength to break above the descending channel’s middle line at roughly $1.159, it could trigger a surge towards the channel’s upper boundary, potentially reaching $1.50.
However, the path forward remains uncertain. If the $0.74-$0.83 support crumbles, FET could plummet to the next support level at $0.453-$0.525. As of now, the sideways movement offers little guidance on the token’s immediate direction.
Polkadot (DOT): Bullish Triangle Hints at Substantial Rally
Another TradingView analyst, Cryptorphic, has turned his attention to Polkadot (DOT). His analysis reveals that DOT is currently nestled within a symmetrical triangle pattern, which is often seen as a continuation pattern preceding a breakout. Additionally, the price movement suggests an accumulation phase.
Cryptorphic highlights a recent strong bounce off the lower support level at $3.59, indicating potential bullishness in the long run. He anticipates a significant rally once DOT manages to break above the trendline resistance.
Key levels to watch, according to Cryptorphic, are the support (accumulation) zone at $3.59 and the primary resistance at $6.50. The analyst’s long-term price target for DOT is ambitious, projecting a potential 10-15x increase.
However, Cryptorphic acknowledges the inherent volatility of the cryptocurrency market. He emphasizes that a weekly close below the crucial $3.59 support level would invalidate his bullish outlook.