Polkadot may be gearing up for a sustained rally towards new all-time highs, depending on the DOT’s ability to hold above an important support barrier.

Polkadot holds vital support

The DOT looks poised for another rally despite the 25% correction it suffered shortly after hitting a record high of $ 55.2 in November.

As the excitement about the start of the Parachain auction increased last week, cryptocurrency number eight has reached an important level of support, represented by the lower bound of a parallel channel that developed on the 12-hour chart from early July .

Any time the DOT falls on the bottom trend line of this technical pattern, it will rebound and rebound to the center line or the top of the pattern. From here it tends to be rejected, which is consistent with parallel channel properties.

The same price action suggests that the channel’s lower trendline will continue to hold and serve as a refueling point for Polkadot. Hence, an increase in buying pressure around current prices could push the DOT towards the middle or upper trendline of the channel. These resistances are at $ 60.6 and $ 89.35, respectively.

Source: TradingView

The TD Sequential indicator gives credibility to the optimistic outlook. It shows a buy-signal in the form of a red nine-candle on the 12-hour chart of Polkadot. Uptrend patterns predict one to four bullish candles or the beginning of a new uptrend.

As long as the DOT holds above $ 41.4, the bullish argument remains valid. However, if all else fails, traders may have an incentive to exit long positions in anticipation of a steep retracement. A subsequent rise in selling pressure could trigger a correction towards $ 34.8 or even $ 30.1.

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Annie

According to crypto briefing

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