Cryptocurrencies are on the march north today, led by a 16% bump in Polkadot (DOT/USD). The bidding has come as a pleasant surprise for crypto bulls, who have taken a pounding thus far in July. At press time, Bitcoin BTC (+8.66%), Ethereum ETH (+11.64%), Ripple XRP (+8.93%), and Dogecoin DOGE (+20.76%) are all deep into the green. It’s worth noting that Bitcoin is back above $30,000, $0.50 has held for XRP, and Dogecoin is now trading in the key $0.20 value area.
The bullish bounce that has occurred over the past 24 hours doesn’t have any clear market drivers. However, equities continue to rebound from Monday’s panic as the USD Index has fallen beneath 93.00. As time goes by, the negative correlation between cryptos and the Greenback becomes more and more apparent.
On the news front, there are a couple of interesting stories facing the cryptosphere. Here’s a brief look at each:
- Coindesk is reporting that Bank of America’s brokerage unit is actively clearing exchange-traded product (ETP) transactions for hedge funds in Europe. This is an important revelation and suggests that institutions are becoming major players in the trade of cryptos.
- A cybersecurity meeting between POTUS Joe Biden, senior U.S. officials and private sector leaders has been scheduled for August 25. The engagement is to address how to protect against and prevent future cyberattacks. Without a doubt, the role of cryptocurrencies as a ransom payment mechanism and potential regulation is sure to come up.
For Polkadot, the past 24 hours have been exceedingly bullish. However, there is a key resistance area on the immediate horizon.
Polkadot Rallies Toward $13.00
As you can see from the daily chart below, Polkadot is in a steep downtrend. Nonetheless, values are up big today and hunting the $13.00 handle.
Bottom Line: Converging indicators are a good thing. Right now, we have the 38% Current Wave Retracement and Daily SMA both sitting at $13.15. Until elected, I’ll have sell orders for Polkadot in the queue from $13.04. With an initial stop loss at $15.09, this trade yields 15.7% ($2.05) on a standard 1:1 risk vs reward ratio.