DOT Price Analysis: Polkadot (DOT) Bullish Set Up Confirmed, Next Price Target $17

PolkadotPolkadot
  • Dot price sees a near 40% revival off weekly low
  • DOT Price is attempting to hold out of falling wedge
  • RSI breaks 5 month trend line

DOT Price Overview

Polkadot (DOT) popped in the crypto scene mid last year as it brought a very useful solution that many cryptocurrency advocates rant about. This solution was pure interoperability across a variety of blockchains, which simply put means; allowing different blockchains to communicate with each other seamlessly. This solution gained much traction as the price of dot experienced nearly 1000% gains in under a year. As the market has fallen the last few months, so has DOT. Although price action is starting to print signs of a potential reversal. 

While looking at the chart, we can see DOT has formed a falling wedge over the past 65 days (shown in blue). This pattern is generally bullish as Polkadot just succeeded in a bullish breakout the last week. At the time of writing, bulls are attempting to break a major resistance zone that is found at $12.85-$14.40.

If price manages to break & hold this zone, DOT will likely rise to its next major resistance of $16.95. But before this can occur, DOT must also break & hold the 30 Day MA shown in red. This mark has held DOT down for over 2 months. 

Polkadot Price Analysis: DOT/USDT 1 Day Chart

If bears come back to take control, DOT will first find support at $12.85. If price fails to hold, DOT’s next bounce area should be the top trend line of the falling wedge pattern. This would be completely fine as it can be looked at as a breakout and retest, which is bullish scenario. Now if Polkadot fails to hold this trend, we can likely suspect a drop to the major support of $10.63 will soon come. Anything below this would be a very bearish scenario. 

  • While looking at the RSI, we can see strength has just succeeded in a breakout of a 5 month long trend line. This is a great sign for the bulls as it is usually the first step to a mid term trend change. As long as DOT can break over the 50 value, much more upside will be on its way.
  • The MACD is currently making a bullish pattern which has one of two MA’s out of it. We should expect a push to the 0 value & a breakout above will likely result in a large price surge.

DOT intraday levels 

  • Spot rate: $13.46
  • Trend: Bearish
  • Volatility: Medium
  • Support: $12.90
  • Resistance: $14.40

The post DOT Price Analysis: Polkadot (DOT) Bullish Set Up Confirmed, Next Price Target $17 appeared first on Coingape.

Publication date: 
07/26/2021 - 14:13
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