DIA and DOT Search for Support and Continue Upward Movement

Spread the love
  • DIA has broken out from a descending resistance line.
  • There is support and resistance at $1.20 and $1.85, respectively.
  • Both DIA and DOT are following ascending support lines.

The prices of both DIA (DIA) and Polkadot (DOT) have deviated above important resistance levels but fallen back below them since.

Despite their declines, both still have potential bullish structures in place that would create higher lows if they were to hold.

DIA Breaks Out But Gets Rejected

On Nov. 21, the DIA price broke out from a descending resistance line (dotted) that had previously been in place since Sept. 23. The breakout was the catalyst for a significant upward move which culminated in a high of  $1.87 on Nov. 23.

However, the $1.85 resistance area rejected the price and it dropped sharply afterward. Nevertheless, the decline only served to validate the resistance line as support and the price is still trading above it.

In addition, it’s possible that DIA is following an ascending support line. As long as the price is trading above this line/area, it should attempt another breakout.

DIA Possible Breakout
DIA Chart By TradingView

Possible Continuation?

Cryptocurrency trader @PostyXBT outlined a DIA chart, stating that he’s buying at the re-test of the current support area and aiming for an increase towards $1.85.

DIA Movement
Source: Twitter

The shorter-term six-hour chart shows that the price is approaching support at $1.21, both a horizontal support area and the 0.618 Fib retracement level of the entire upward move.

Furthermore, this level also coincides with the possible ascending support line, which has not been validated enough times yet.

As long as the price is trading above this support area, it should eventually make another attempt to reach the $1.85 resistance area.

However, technical indicators do not yet give any bullish reversal signs. If the support area/line were to fail, the next support would be at $0.90.

DIA Horizontal Support
DIA Chart By TradingView

DOT Deviates Above Range High

Unlike DIA, the DOT price actually broke out above its main resistance area, which is at $5.60. However, the breakout turned out only to be a deviation since the price fell right back below it shortly afterward.

Similarly to DIA, DOT is following an ascending support line and has almost reached it in the form of a long lower wick.

DOT Deviation
DOT Chart By TradingView

The shorter-term chart shows that the support line coincides with the $4.35 support, both a horizontal support area and the 0.786 Fib retracement level.

As long as the area/line holds, DOT will likely move upwards and make another breakout attempt.

DOT Approaches Support
DOT Chart By TradingView

Conclusion

To conclude, both DIA and DOT are approaching important support levels that would create higher lows and a bullish structure if they were to hold. However, there are no bullish reversal signs yet in either pair.

RECOMMENDED READ:  ‘Coordinated media FUD' about Bitcoin from Financial Times to Fox Business

 192 Interactions,  2 today

READ ALSO:
 Algorand, BAT, Bitcoin Cash Price Movement Analysis for 17th April, 2021

BAT is expected to trade rangebound in the coming days, while Algorand is expected to split below a rising wedge Read more

Cardano, Cosmos, Hedera Hashgraph Price Movement Analysis for 17th April, 2021

Cardano was moving in an ascending channel, and a failure was predicted as it reached the $1.49-resistance stage. Cosmos could Read more

Ethereum, BitTorrent Token, Zcash Price Movement Analysis for 17th April, 2021

Following a bearish divergence, Ethereum fell to $2310. BitTorrent Token seemed to be on the verge of converting the $0.0089 Read more

When will the Bitcoin price boom come to an end? Here’s what’s behind the Bitcoin bull market.

Is the sustained rise in Bitcoin values due to a steady stream of positive news, or is there anything else Read more

Why is Dogecoin still attracting looooong hodlers?

OGE's price has increased by more than 140 percent in the last 24 hours, and the altcoin is actually ranked Read more

Investors’ on-chain behaviour suggests that Bitcoin’s valuation period will peak above $166 in the near future.

If history repeats itself, the Bitcoin period top will most likely occur at prices over $166,000 per coin. Bitcoin (BTC) Read more

RECOMMENDED READ:  Crypto Long & Short: Bitcoin’s Quiet Progress Is Pointing Toward a Better Future
Litecoin, Ethereum Classic, Synthetix Price Movement Analysis for 17th April, 2021

Litecoin and Synthetix traded between ascending networks, but a bullish wider market could postpone the breakdowns in the coming sessions. Read more

 Chiliz, Stellar Lumens, Verge Price Movement Analysis for 17th April, 2021

Historically, the altcoin market has tracked the price movement of Bitcoin. Indeed, for the majority of its existence, the fortunes Read more

Bitcoin Price Movement Analysis for 17th April, 2021

Following reports that Turkey's central bank had placed a ban on crypto-holders using their digital currencies for payment, Bitcoin fell Read more

Peter Schiff predicts the DOGE will reach $1 and proposes that Twitter avatars wear laser beams.

Peter Schiff, CEO of Euro Pacific Capital and a well-known Bitcoin detractor, took to Twitter to comment on Dogecoin's latest Read more

RRipple to Provide ODL Metrics to Institutions and Private Clients

Matt Hamilton, director of developer relations at RippleX, shared on Twitter that Ripple expects to add ODL indicators to its Read more

NFT platforms: reaching outside marketplaces to offer one-of-a-kind content

Why do artists want NTFs, and what can be done with them apart from purchasing and selling? Here's what the Read more

Leave a Reply

Contact Us