After Bitcoin’s loss of $20,000, the altcoin market also had to follow the negative momentum. New analysis points to new lows for Polkadot, Ethereum and Solana.
Polkadot price in decision phase amid sideways movements
Polkadot price witnessed a 21% pullback between September 10 and 13. Meanwhile, its price dropped from $7.77 to $6.19. After this sudden downtrend, a recession period started within a sideways rectangular formation. All price action as a whole defines the “bear flag” pattern. This technical formation shows the continuation of the bearish trend with an increase of 21% in case the base of the flag at roughly $6.19 is broken.
The bottom price target of the formation is determined by adding the height of the flagpole to the breakout point and estimating downwards. Accordingly, the final target for Polkadot price is $4.88. Despite these idealized targets, analyst Akash Girimath recommends watching closely the $5.40 support level, where buyers have a chance to step in and attempt a reversal.
Regardless of the drop in the charts, investors should also keep a close eye on the Bitcoin price. Market participants should be cautious as BTC is also potentially bearish. If Bitcoin price triggers a reversal, Polkadot price will follow the market. In such a case, a daily candlestick above $6.48 will create a higher top (HH). So it will invalidate the bearish thesis for the DOT. This move could turn into a rally if the bulls make a strong comeback and maintain their momentum. In such a case, DOT’s next target will be a test of the resistance level at $6.86.
Leading altcoin could explore lower levels
While highlighting the correlation of altcoins with Bitcoin, it is also worth paying attention to Ethereum. Ethereum price registered a daily candlestick close below $1,297 on Oct. Thus triggered a bear flag breaking. This technical formation includes a big sell called the flagpole. This is followed by a tight, but upward-facing consolidation called the flag.
The 15% crash between September 17 and 21 created a flag in ETH price. This model predicts the flagpole height to reach $1,100, a 15% drop added by the $1,297 breakout point. A break of the $1,280 support level will trigger this decline. It will lead Ethereum price to $1,080, which is the midpoint of the $1,282-878 range. However, given the bearish trend of Bitcoin price, there is a risk that the price will drop further. We can see ETH break the psychological level of $1000 and drop into the three-digit zone.
Conditions for Ethereum price are not always bleak. The rapid recovery in Bitcoin price will make things easier for ETH investors. If Ethereum price breaks above $1,338, this will invalidate the drop with a higher top. Such a development would suggest that the bulls are strengthening to take the bullish $1,440.
Solana price may continue to drop
Solana price is showing new reasons for lower lows. Last month witnessed a drop of 22 after a bull trap. A volume flow emerged during the September drop. Thus implying that the bears are in control of the trend. Now, on Monday, October 10, the bears formed a spike along a trendline that provided support for Solana price throughout September.
Solana is currently trading at $32.112 as the bears produced a steep drop to start the second week of October. SOL price gained momentum over the weekend as the bulls were rejected from the 8-day EMA. The RSI is currently in oversold conditions, pointing to the potential for a short-term bounce that will likely be short-lived.
Under these conditions, FXStreet analyst Tony Montpeirous says that Solana will lose the $30 support in the coming days. Such a move would ultimately result in an additional 7% drop.
The bulls must surpass the September 12 high of $38 to invalidate the bearish thesis. After that, an additional bullish rally will occur, targeting the $44 liquidity levels. The price action in question will result in an 18% rally from the current Solana price. cryptocoin.comAs you follow, Solana is currently trading at $31.47.
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