Polkadot Price Movement Analysis for 18th March, 2021

Spread the love

 260 Interactions,  2 today

Polkadot broke out of its range lows at $18 in early February, and the market soared to an all-time peak of $42.28 in the intervening two weeks. DOT has been refused many times since then at the $38.2-level of resistance. However, another breakout to the upside is still possible.

Polkadot 12-hour chart

The 12-hour map illustrated the rejection at the opposition, but higher lows were reported for each rejection. Since the chart formed an ascending triangle shape, this fuels bullish hopes for DOT in the coming weeks.

Reasoning

Rather frequently than not, the ascending triangle map trend sees an upward breakout. Given the clear uptrend preceding the pattern forming, a continuation of the uptrend (after the consolidation period of the previous two weeks) seems more plausible than a pullback towards $30.

The RSI was close the neutral 50 axis, indicating that there was no significant traction behind DOT over longer timeframes. Furthermore, the Stochastic RSI was regaining oversold ground.

RECOMMENDED READ:  How Bitcoin price rejection at $58K triggers Altcoins sell-off

The OBV was still largely stable, though lower timeframes, such as 4-hour, demonstrated a downward trend over the previous three weeks.

 

Important levels

In the coming days, the $38.2-$38.7 range will be the most important area of resistance for DOT. The ascending trendline is also expected to provide support to DOT. Based on the width of the triangle pattern, a breakout over $38.2 will target $46.

A stop-loss chase to the $33 support level before a jump upwards is also possible, but such a decline would weaken the pace of the subsequent breakout.

If the bears take the $33 mark, DOT will most likely slip to $28.8.

Conclusion

The triangle pattern indicated that the DOT market was gaining momentum for its next powerful advance, and the course of the move would need to be confirmed over the next few trading sessions.

 

Leave a Reply

Contact Us