The ETH/BTC pair has stopped trending downward and has actually made gains in recent days, flashing a buy signal across the majority of the altcoin market as high and medium cap coins started to see differing degrees of returns. Polkadot had recently seen an ascending triangle form, only for the stock to break down below the $33.8 mark and drop as low as $27.45 in the previous week. DOT, on the other hand, has recovered well since then and was valued at $45.1 at the time of publication.
Polkadot 1-hour chart
Source: DOT/USDT on TradingView
The heavy gains of DOT on the charts had already been hinted at in recent days. The Fibonacci retracement tool showed that the 50% retracement stage was at $33.1, and DOT recovered strongly above this level. The eventual reversion of the $33.8 level of support was also a positive indication, indicating the DOT was likely to return to the $38 level, which had previously resisted the bulls’ efforts to climb past.
DOT has already hit the 23.6 percent extension mark at $43.84 at the time of publishing. On both the hourly and longer-term timeframes, technical indicators demonstrated good short-term bullish traction. In the short term, a jump to $48 and over $50 cannot be ruled out.
Reasoning
On the 30-minute chart, there was a bearish variance that has already worked out, with DOT falling from $46.67 to $43.92 before rising again. The hourly chart did not yet display such divergences, and the longer timeframe charts displayed DOT with good bullish momentum.
The recent rally has also been driven by buyer desire, as shown by the recent uptrend in the OBV.
The RSI was high over neutral 50, and the Amazing Oscillator had also skyrocketed in recent hours. The $43-$44 range would be a decent spot to buy, while long-term buyers would wait for a retest of the $40 mark. This has not yet been stated, but it will happen in the coming weeks.
Conclusion
Momentum was squarely on the bulls’ side as DOT burst out above the previous ATH and is expected to see more market exploration.
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