Crypto Tony, a crypto analyst, noted on X platform that Polkadot was holding steadily above support levels, showcasing resilience in the face of market fluctuations. At the time of writing, Polkadot was trading at $10.98 against the US dollar, with a 24-hour trading volume exceeding $550 million. The coin’s market capitalization stood at $14.16 billion, with over 1.2 billion DOT coins in circulation.
Despite the positive momentum, traders are advised to approach with caution, as DOT’s Relative Strength Index (RSI) on the daily chart reached 71.58, signaling potential overbought conditions. However, the Moving Average Convergence Divergence (MACD) indicator indicated bullish momentum, currently reading at 0.85. Consequently, traders should exercise vigilance and consider implementing risk management strategies amidst the possibility of a pullback.
Shifting focus to Ethereum, Crypto Tony emphasized the importance of the $3,600 level for bullish sentiment, reassuring investors amidst minor pullbacks. Ethereum is currently trading at $4,045.35, with a robust 24-hour trading volume surpassing $26 billion. The coin’s market capitalization exceeded $485 billion, with over 120 million ETH coins in circulation.
However, caution is warranted as the ETH RSI on the daily chart reached 79.58, suggesting potential short-term overbought conditions. Despite this, the MACD indicator showed strong bullish momentum, currently standing at 316.4. Nonetheless, traders are advised to exercise prudence and await confirmation before making trading decisions, considering the possible discrepancy between the RSI and MACD indicators.
While both Polkadot and Ethereum demonstrated resilience and bullish momentum, traders should remain cautious amid potential overbought conditions indicated by the RSI. Implementing risk management strategies and awaiting confirmation before making trading decisions are prudent approaches in navigating the cryptocurrency market.
