Top 3 Coins to Watch Today: ADA, MATIC, SAND – January 4 Trading Analysis

January 04, 2022, 8:00 AM AEST - 1 week ago

Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.

1. Cardano (ADA)

Cardano ADA is a proof-of-stake blockchain platform whose stated goal is to allow “changemakers, innovators, and visionaries” to bring about positive global change. The open-source project also aims to “redistribute power from unaccountable structures to the margins to individuals”, helping to create a society that is more secure, transparent, and fair. Cardano is used by agricultural companies to track fresh produce from field to fork, while other products built on the platform allow educational credentials to be stored in a tamper-proof way, and retailers to clamp down on counterfeit goods.

ADA Price Analysis

At the time of writing, ADA is ranked the 6th cryptocurrency globally and the current price is US$1.37. Let’s take a look at the chart below for price analysis:

Source: TradingView

ADA‘s nearly 75% drop from its November highs found a low near $1.22 during mid-December before closing over a short-term high.

This daily close over the high could signal a shift in market structure that might reach probable resistance near $1.48. A sustained bullish move may target the swing high at $1.57. If this stop run occurs, a run beyond the high into probable resistance near $1.65 and $1.80 is possible.

Bulls could buy a retracement to possible support near $1.30, just above the monthly open. A bearish turn in the marketplace may propel the price toward possible support near $1.24. 

However, relatively equal lows near $1.19 and $1.14 provide an attractive target for bears if the market resumes its bearish trend. A run on these lows might find support between $1.10 and $1.05.

2. Polygon (MATIC)

Polygon MATIC is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications. The MATIC token will continue to exist and will play an increasingly important role, securing the system and enabling governance.

MATIC Price Analysis

At the time of writing, MATIC is ranked the 14th cryptocurrency globally and the current price is US$2.49. Let’s take a look at the chart below for price analysis:

Source: TradingView

December 2021 marked a turning point for MATIC, with the price rocketing up almost 85% from its lows to probable resistance beginning near $2.85.

The price is currently struggling with the area between $2.38 and $2.60. This region could provide support after a close above, or resistance after a close below. 

A retracement could reach into the daily gap and possible support around $2.35. A more bearish shift in the marketplace will likely aim for the relatively equal lows near $2.24, and the potential support just below that begins around $2.15.

Continuation to the upside will likely target the recent monthly highs near $2.89. However, probable resistance beginning at $2.70 and $2.78 could cap or slow down this move.

3. The Sandbox (SAND)

The Sandbox SAND is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralised autonomous organisations (DAOs) and non-fungible tokens (NFTs), the Sandbox creates a decentralised platform for a thriving gaming community. The Sandbox employs the powers of blockchain technology by introducing the SAND utility token, which facilitates transactions on the platform.

SAND Price Analysis

At the time of writing, SAND is ranked the 36th cryptocurrency globally and the current price is US$5.82. Let’s take a look at the chart below for price analysis:

Source: TradingView

Since November’s high, SAND‘s 65% drop marks the current range as a reasonable area to expect accumulation.

The recent bearish flip of the 9, 18 and 40 EMAs might cause bulls to be less aggressive in bidding. However, possible support near $5.62 and $5.42 – between the 61.8% and 78.6% retracements – could see at least a short-term bounce. 

Long-term consolidation suggests that the areas near $6.34 and $6.90 may be more likely to cause a longer-term trend reversal. 

Bears are likely to add to their shorts at probable resistance beginning near $6.15, which has confluence with the 18 EMA. A fast break of this resistance could trigger more selling near $6.30, the start of the bearish move.

If an aggressive bullish move does appear, trapped buyers in the probable resistance beginning near $6.54 might provide a ceiling for this impulse.

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Where to Buy or Trade Altcoins?

These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.

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