- DOT coin price as per the price action is aon a strong bullish move since the past couple of days following the overall cryptocurrency market trend.
- DOT coin price is forming a cup and handle pattern on a daily time frame.
- The pair of DOT/BTC is trading at the price level of 0.000280 with a decrease of -1.34% in the past 24 hours.
DOT coin price is making a higher high and higher low price structure formation on a daily time frame. Despite the consolidation in the overall cryptocurrency market . The DOT coin price has managed to sustain at the long term supply zone indicating a bullish momentum in the upcoming trading days if it breaks the supply zone successfully. As of now, the DOT coin price is transacting at the level of $6.083.
DOT coin price fails to hold the supply zone
DOT coin price, as per the price action, is forming a reversal chart pattern on a daily time frame.prior to the current bullish momentum the DOT coin price was falling below the long term supply zone but bulls overpowered the bears and as a result the coin price managed to surpass the short term supply zone, leading trading at the long term supply zone of $7.6.
At present, the coin price has surpassed the 50 and 100 Moving Averages. Moving upwards these MAs can be seen acting as a strong demand zone during the pullback in the bullish run.
At present, the DOT coin price is trading at the upper band of the bollinger band indicator. This comes after the coin price breaks the important 15EMA. However, the coin price was not able to break the supply zone. Despite that the volumes have increased as the coin price bounced off the demand zone. Therefore the investor should remain cautious as volatility is bound to increase.
DOT coin price is forming a cup and handle pattern on a daily time frame
DOT coin price managed to sustain above the demand zone, skiing a bullish rally following the consolidation at the demand zone. As a result, the coin order bounced off to the supply zone. Following the coin price, the MACD indicator triggered a positive crossover. The blue line crossed the orange line on the upside indicating a bullish rally. If the coin price can break the supply zone with strong bullish pressure, then the MACD lines can be seen riding supporting the trend.
The DOT coin price has turned bullish as it managed to bounce off the demand zone forming a strong bullish candlestick pattern on a daily time frame. Recent bullishness resulted in the DOT coin price rising above the important short-term demand zone. Previously the DOT coin price was resting in the supertrend buy line demand zone. As the coin price rose to the super trend sell line it faces rejection. As of now, the coin price is consolidating, and the breakout of the cup and handle will result in the super trend indicator triggering a buy signal.
RSI curve is trading at the price of 61.63 as the coin rises off the demand zone. At present, the RSI curve has risen above the 20 SMA. The coin is forming higher low and higher high formations on an hourly time frame as the coin shows bullishness in the higher time frame. The DOT coin price can be seen moving if it sustains the recent gains and if it does then the RSI curve can be seen moving even higher up supporting the trend. Once the RSI curve crosses the mark of 70, the DOT coin price can be seen moving up quickly.
Conclusion: The DOT coin price as it suggests is bullish, as it reverses from the long-term demand zone. As per the price action, is it forming a reversal chart pattern. For the coin price to reverse from the current trend it needs to break out of the supply zone activating the reversal chart pattern. The technical parameter indicates a possible breakout of the supply zone. Investors should remain patient and wait for a proper trend before jumping into it.
Support: $5.7 and $5.1
Resistance: $7.1 and $7.7
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/02/14/dot-coin-price-analysis-dot-coin-price-ready-for-fierce-ride/