101 total views
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
For over eight months, Polkadot [DOT] has been struggling to bring forth a change in the long-term bearish narrative. The last two weeks, however, have been somewhat hopeful as the alt finds a position above the basis line (green) of the Bollinger Bands (BB).
While the recent growth aided DOT’s move toward its immediate supply zone in the $8.6-$9.1 range, the sellers could aim to pose near-term hurdles. At press time, DOT traded at $8.62, up by 4.87% in the last 24 hours.
DOT Daily Chart
The revival from the alt’s 18-month low on 13 July has reignited the near-term buying pressure. This renewed force helped DOT flip its four-month trendline resistance (yellow, dashed) to support.
Over the last few weeks, DOT has been extending its bullish volatile break. As a result, it kept hovering near the upper band of the BB. Should the current candlestick reverse from the $8.6-$9.1 resistance range, DOT could see a near-term setback. In this case, Potential targets would lie in the $7.3-zone near the basis line of BB.
Traders/investors should watch for a reversal from the immediate resistance range to identify the chances of this near-term drop. Any bearish invalidations or premature bull runs could be short-lived by the $9.8-mark resistance.
After escaping its sideways track for nearly a month, the Relative Strength Index (RSI) took a bullish stance and revealed an edge for the buyers. To alter this bullish outlook, the sellers needed to test and eventually breach the 56-mark support.
However, the Chaikin Money Flow (CMF) saw lower peaks while the price action marked higher highs. This affirmed a bearish divergence with the price. Similarly, the Volume Oscillator resonated with the CMF and confirmed a bearish divergence.
In view of the immediate resistance range, overbought readings on the BB, and the divergences on the indicators, DOT could see a near-term decline before picking itself up. The targets would remain the same as discussed above.
However, an overall market sentiment analysis becomes vital to complement the technical factors to make a profitable move.
Adblock test (Why?)
Blockcast.cc does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.