The altcoin market reacted well to the bullishness of Bitcoin in recent hours. Polkadot and XRP climbed past significant short-term levels, while Zcash presented areas where buying opportunities could arise. Dogecoin hinted at a possible lack of demand in the rally of the previous day.
Polkadot formed an ascending channel pattern (white) on the charts. The pattern had some validity as the price has consistently bounced between the upper and lower boundaries, while also respecting the mid-point of the channel (dotted white) as support/resistance along the way.
The indicators showed heavy buying volume on the volume indicator in recent trading sessions and a pump upward in price. The RSI reached overbought territory above 70 and fell slightly, while the Stochastic RSI also formed a bearish crossover. A retest of the $19-$19.2 area could be a buying opportunity.
XRP climbed past the mid-point of a descending channel that it has been trading within since mid-August last year. This was a significant development, especially when compared with its uptrend in the past week. The price has registered a series of higher lows and has also beaten a local high at $0.84 in the same time period.
The RSI was at 61 to show strong bullish momentum, while the OBV has also been steadily climbing.
ZCash has performed very well in the market in the month of March as it climbed from the $110 lows to beat the long-term supply zone at $145. At the time of writing, it was trading at $178.7 and rising quickly.
In the near term, the $175 area and the $168 area (cyan boxes) can be expected to act as regions of demand for ZEC. To the upside, strong resistance lies in the $190-$200 zone, with $191 a level to pay attention to. The Awesome Oscillator and the MACD retreated in recent hours after a strong bullish advance, which indicated the leg downward was only a retracement before a higher high.
The $0.1250 area (red box) has acted as a zone of supply in the past three weeks. At the time of writing, the bulls had driven prices up to this zone in an attempt to break past the sell orders in this area.
Even though the RSI stood at 67 to denote strong bullish momentum, and the Supertrend indicator gave a buy signal, a bullish outlook for DOGE in the short-term needs to be tempered with caution. The OBV has been unable to break above the local highs, even though it is testing them on the price charts. This suggested that the rally might be losing buying pressure.