The cryptocurrency market has experienced a sharp decline following the news of the SEC lawsuit against Binance and its CEO Changpeng Zhao for alleged securities law violations yesterday.
Both Polkadot (DOT) and Near Protocol (NEAR) have broken important horizontal support levels following this move. They could decline to the lowest levels of the year in the near future.
Polkadot (DOT) breaks crucial support
After breaking below the ascending support line formed since the yearly low at $4.2, the price of Polkadot (DOT) found support at $5.2. The bulls held this level for 27 days and formed bullish divergence in the daily RSI indicator (blue line). This is a signal that a recovery might occur.
However, the price has broken below the horizontal support level at $5.2 yesterday, marking the continuation of the previous downtrend. The RSI indicator has also broken below the bullish divergence line during this process.
Invalidating a bullish signal often leads to a sharp decline. Therefore, the price of DOT is likely to decline to the yearly low at $4.2 in the near future.
Near Protocol (NEAR) continues the downtrend
Near Protocol (NEAR) has a similar outlook to Polkadot (DOT) but provides more bearish signals. The price of NEAR has broken below the crucial support level at $1.7 and confirmed it as resistance from May 8th to June 5th. This is a bearish development, indicating that the bears are in control of the market.
Indeed, the price of NEAR has broken below the minor support level at $1.55, marking the continuation of the downtrend.
Therefore, the price of NEAR is likely to decline to the yearly low at $1.2 in the coming days.
The daily RSI indicator supports this possibility as it remains below 50 and slopes downward.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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