Polkadot (DOT) broke the short-term descending resistance line and ended the downtrend that began September 14th.
It is currently preparing to try above the September highs and then the ATH levels.
DOT moves towards resistance
The DOT has risen along with the ascending support line since July 20th when it hit as low as $ 10.37. The upward movement is still ongoing, hitting $ 38.77 so far on September 14th.
The main resistance area is at $ 41.35. This is the 0.786 fib retracement resistance and the horizontal resistance range.
With DOT trading above the ascending support line, the bullish structure remains intact. In addition, technical indicators support the continuation of the upward trend.
The MACD has shown a bullish reversal signal and the RSI has moved above 50 after breaking below that level (green circle).
DOT / USDT daily chart | Source: TradingView
Trader @PostyXBT sketched a DOT chart indicating that he bought more in the $ 28.50 support area. The support zone also coincides with the ascending support line, making it a very strong confluence.
If price breaks above the $ 41.40 resistance area, the DOT will likely rise to the May high near $ 50.
The source: Twitter
The shorter-term 2-hour chart also offers a bullish outlook. It shows that the DOT has broken out above the descending resistance line. This line has formed since the price drop on September 14th, so a break above it is a sign of a possible trend change.
The RSI and MACD indicators are the same as in the daily time frame. The first index has risen above 50 while the latter is in positive territory, showing that the short-term trend is bullish.
Currently, the DOT stands in front of the 0.618 fib retracement resistance at $ 33.70. If price can move above it, the next target could be the $ 41.40 resistance area.
DOT / USDT 2-hour chart | Source: TradingView
You can see the DOT prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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