102 Interactions, 2 today
Polkadot has regained some lost ground after plunging to $12.75 on 22 June, but its price remains trapped below a critical resistance level. While wider market indications govern DOT’s movement for the time being, bulls are preparing for a breakout in the long run. Polkadot was trading at $15.5 at the time of writing, down 1.4 percent in the previous 24 hours.
Polkadot Daily Chart
The daily chart of DOT still showed a bear market, with prices remaining below their 20, 50, and 200 Simple Moving Average lines. Despite such pessimistic mood, DOT bulls have sought to rally, but advances have been confined to a resistance level of $17.4.
As a result of the higher lows established by DOT, an ascending triangle developed on its daily chart. The fundamental premise is that such a pattern typically results in an upside break, but specific circumstances have to be satisfied in DOT’s instance for this to be true. Buyers must aim to limit losses around the low of $14.5 on July 2nd in order to preserve a positive advantage. A closing below this level would threaten a 9% drop towards the swing low of $12.75 established on June 22nd, invalidating DOT’s bullish setup.
The Relative Strength Index was still in negative territory, although it had begun to rise in recent days. As the index approaches the half-line, selling pressure may seek to derail its momentum. A move over 50-55 would increase the likelihood of a break above $17.4. The MACD had already shown a bullish crossover, and purchasing momentum had begun to flow into the market. Despite the fact that the Aroon up (orange) was near to 0%, a climb over the Aroon down (blue) would indicate the start of a bullish trend.
A break above the top trendline of its pattern would propel DOT towards the $19.5 resistance level, where some stabilisation is likely before the next upsurge. As previously said, bulls must keep DOT above $14.5 to increase their chances of a good conclusion.
Polkadot was preparing for a breakthrough above its ascending triangle, which may result in a 13 percent increase towards the $19.5 mark. However, given the current wave of selling pressure in the market, the possibility of a collapse cannot be ruled out.