Two DeFi Coins that Have Bounced Near Support Levels

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In Brief
  • SUSHI is following a descending resistance line.

  • There is support and resistance at $1.40 and $2.15, respectively.

  • DOT is trading between support and resistance at $3.55-$5.65.

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The prices of both Sushi (SUSHI) and Polkadot (DOT) have recently reached local bottoms.

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While the former seems to have begun a new upward move, it’s possible that the latter is still correcting and has one more lower-low before it resumes its upward movement.

Sushi (SUSHI)

On Sept 6, the SUSHI price reached a high of $3.50. Afterward, it began a downward movement alongside a descending resistance line that is still ongoing.

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Cryptocurrency trader @damskotrades outlined a SUSHI chart, which suggests the price will reach a bottom near $1.24 before moving upwards once more, possibly targeting $4.50.

Source: Twitter

Since the tweet, the price has resumed its downward movement and reached a low of $1.319 on Sept 17 and bounced upwards. This validated the $1.40 area as support.

If the price continues moving upwards, the closest resistance area is found at $2.15, a previous support area that now also coincides with the aforementioned descending resistance line.

SUSHI Chart By TradingView

If the price continues moving upwards, the next resistance areas would likely be found at $4.60 and $7.60, respectively.

SUSHI Chart By TradingView

Polkadot (DOT)

The DOT price has been increasing since it reached a low of $3.55 on Sept 5. Since then, the price has been following an ascending support line. At the time of press, the price was trading very close to the $5.65 resistance area, which is also the 0.618 Fib level of the entire downward move.

Therefore, support and resistance areas are found at $3.55 and $5.65. A breakout from the latter could take the price towards new highs, while a breakdown from the ascending support line would likely cause a fall towards the $3.55 support area.

DOT Chart By TradingView

The wave count indicates that it is more likely that the price is still correcting, completing a B wave inside the $5.65 resistance area. The bearish divergence in the MACD and RSI supports this possibility.

If correct, the price could eventually make another low below $3.14. A breakout above the current resistance area and its re-test as support would invalidate this particular wave count.

DOT Chart By TradingView

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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