While the larger altcoin market does share a broad correlation with Bitcoin, the world’s largest cryptocurrency, the said correlation isn’t uniform or inconsistent. This was the case over the past week as well, with the price actions of Polkadot, Enjin, and VeChain underlining the same.
Polkadot [DOT]
Source: DOT/USD on TradingView
Polkadot, the cryptocurrency ranked 6th on CoinMarketCap at press time, has had a good few months, with the altcoin surging up the charts, both in terms of price and position. Over the past few weeks, however, DOT’s movement has been very uneven, with its charts seeing a series of crests and troughs.
The Bitcoin-led devaluation over the last 7 days was just another in the same series. It should be noted, however, that while DOT did fall by almost 13% in the said case, it was up by over 8% since. What’s more, most of DOT’s price corrections came some time after the rest of the market had already corrected itself.
DOT’s technical indicators were ambivalent as while the Parabolic SAR’s dotted markers were well below the price candles, the Chaikin Money Flow was pointing south, heading below zero on the charts.
The altcoin was in the news recently after its ecosystem developments and surging popularity and use cases reportedly sparked a rally in the likes of REN and OCEAN.
Enjin [ENJ]
Source: ENJ/USD on TradingView
Before the market-wide depreciation a few days ago, ENJ was at the end of a sharp uptrend on the price charts. In fact, following the same, Enjin even hit an ATH. However, while it was a little late coming, corrections did eventually affect ENJ’s market, with the crypto falling by over 22% later.
It’s worth noting, however, that at press time, Enjin was still well-positioned to build on its price action, especially since Bitcoin was recovering to climb above $55,000 on the charts.
While the mouth of the Bollinger Bands was closing in to suggest some limitations on volatility, the Awesome Oscillator’s histogram pictured a fall in bullish market momentum.
VeChain [VET]
Source: VET/USD on TradingView
VeChain, the cryptocurrency positioned 19th on CoinMarketCap’s rankings at press time, like Enjin, was moving on the back of a sharp uptrend on the price charts, before corrections hit. Like Enjin, VET too hit its ATH recently, with the altcoin touching $0.08 a few days ago. Alas, since the same, the crypto has fallen by over 10%, with bearish momentum gaining steam across the board.
The same was highlighted by the altcoin’s indicators as while the MACD line was well under the Signal line, the Relative Strength Index was holding firm around the 55-mark after dipping sharply from the overbought zone.