Bitcoin’s recent upward momentum has caused most of the altcoins to rebound. Polkadot (DOT) is no exception. In fact, it worked very well. Polkadot gained an impressive 28% in four days, hitting the critical $ 29.8. At the time of writing, it has dropped to $ 28.8.
DOT has been forming a descending wedge (white) for two weeks and erupted a few days ago. It rose steadily and quickly to $ 29.81. Resistance on a higher timeframe is also present near $ 29.86 ($ 29.86).
Using the Fibonacci retracement tool to increase the DOT from $ 23.27 to $ 29.81, you can see that the price has decreased to $ 28.27, which is the 23.6% retracement.
The $ 28-28.4 area has also been an area of liquidity for the past few weeks and it’s an encouraging sign of the bulls’ strength showing they have enough buying pressure in this area.
Although not shown in the graph, the 27.2% and 61.8% extensions of the DOT breakout are at $ 31.59 and $ 33.85, respectively. In general, these expansion stages are areas in which migration is at least temporarily suspended.
The A / D line has risen to a higher lows in the past few days. This shows that the volume of purchases exceeded the volume of sales in the past few days.
The Awesome Oscillator fell below zero from $ 29.8 to $ 28.2 during the pullback. This process doesn’t say much about the price action as it is a 1 hour time frame. The 21-period SMA (orange) is still above the 55-period SMA (green) on the price chart.
Another thing to note on the stock chart is that a retracement occurs when volume decreases. This means that the pullback is likely just a pullback and will be followed by an upward move. There is little concern that trading volume has not increased after retesting $ 27.8. This is an indication that a deeper pullback is still possible.
The 23.6% level appears to have stopped the crash, but a return to $ 27-27.3 cannot be ruled out. However, based on the evidence available, it is very likely that the bulls will continue to advance towards the $ 31.59 and $ 33.85 levels. The $ 30 level is likely to be circular numerical resistance on the way up, and candlesticks above that level will continue to stimulate buyers.
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.