Polkadot, Dogecoin, Chainlink price analysis roundup
- Polkadot, Dogecoin, and Chainlink remain under pressure
- Bitcoin is trading close to $40000 support
- Monetary tightening is usually seen as a drag on risky assets
The cryptocurrency market is losing its value this Tuesday, Bitcoin is trading below $42000, and the risk of another decline is not over. This situation also negatively influences Polkadot DOT/USD, Dogecoin DOGE/USD, and Chainlink LINK/USD.
Investors should consider that if Bitcoin falls below the $40000 support, the prices of these three cryptocurrencies can weaken even more.
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The International Monetary Fund recently reported that the impressive growth of cryptocurrencies in the last year has come with the unintended consequences of a “contagion across financial markets.” The International Monetary Fund warned:
Given their relatively high volatility and valuations, their increased co-movement could soon pose risks to financial stability, especially in countries with widespread crypto adoption.
Mike Novogratz, CEO of Galaxy Digital, said this week that the outlook for the cryptocurrency market remains bearish due to the fact that the Federal Reserve could raise interest rates at least three times this year to fight persistent inflation.
Monetary tightening is usually seen as a drag on risky assets, and according to Mike Novogratz, the cryptocurrency market would underperform in early 2022 due to stock market weakness.
According to data from on-chain analytics platform CryptoQuant, more than 30,000 BTC worth $1.3 billion was withdrawn from crypto exchanges on January 11.
DOT is trading close to $20 support level
Polkadot (DOT) has weakened from $55 to $22.4 since November 04, and the current price stands at $24.7.
If the price breaks the support level at $20, it would be a very strong “sell” signal, and the next target could be around $15.
Polkadot remains in a bear market, and traders should use “stop-loss” and “take profit” orders when opening their positions because the risk is currently high.
DOGE remains under pressure
If the price falls below the current support that stands at $0.15, it would be a strong “sell” signal, and the next target could be around $0.13.
The risk of further declines is probably not over, but if the price jumps above $0.25, we have the open way to $0.30.
LINK has support at $20
Chainlink has weakened from $38 below $20 since November 09, 2021, and the current price stands at $22.4.
The current support level for LINK stands at $20, and if the price falls below it, the next price target could be around $18 or even below.
On the other side, if the price jumps above $30 resistance, it would be a strong “buy” signal, and we have the open way to the $35.
The cryptocurrency market is losing its value this Tuesday, and according to Mike Novogratz, CEO of Galaxy Digital, the outlook for the cryptocurrency market remains bearish due to the fact that the Federal Reserve could raise interest rates at least three times this year. Polkadot, Dogecoin, and Chainlink can weaken even more if the negative trend continues, and investors should consider that if Bitcoin falls below the $40000 support, it would add further pressure to the whole cryptocurrency market.
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