The sentiment in the cryptocurrency market continues to remain negative, as cryptos continue making lower lows and lower highs. We have seen retraces higher here and there, but not so much for Shiba Inu and Polkadot coins. they remain quite bearish and trade below support levels, which have now turned into resistance. So, the situation looks bleak for these two cryptos.
Shiba Inu Daily Chart Analysis – SHIB Trading Below the 200 SMA
in 2021 Shiba Inu coin increased around 20,000,000%, while Shiba’s future for 2022 looks bright, from a fundamental perspective. Shiba is planning to roll out the Shibarium project, which is a layer-2 blockchain. This will help Shiba lower fees, since at the moment it is built on the Ethereum layer-1 blockchain which suffers from congestion and high fees as we know.
When and if Shibarium lower’s fees, the SHIB coin should become a more attractive payment option. This would attract more retailers as a result. The retail demand for Shiba is high, with SHIB holders at 1.1 million currently. But for now, the situation looks totally bearish for SHIB/USD which has not been moving in the last two weeks, while the crypto market has retraced higher somewhat. Nevertheless, the cheaper Shiba becomes the better it is for us to buy at a lower price. For now, we are still out, following the price action.
Polkadot Daily Chart Analysis – The 20 MSA Turns into Resistance for DOT Coin
DOT showing no buying pressure whatsoever
Polkadot has also turned really bearish since November, declining from $55 to $15, which means that it has lost more than 2/3rds of the value. DOT/USD has now fallen below all moving averages, which have turned into resistance, with the 20 daily SMA (gray) pushing the price lower yesterday.
Polkadot is a cross-chain platform, with the aim to provide scalability for global dApps. Recently it has auctioned five parachains, with Moonbeam already going live on the blockchain. This will increase cross-chain interoperability and attract more DeFi projects. But, the sentiment is quite bearish here as well, so until the market sentiment improved, DOT will remain weak. But again, this is a good opportunity to look at buying DOT coins.
DOT/USD
