Published 9 hours ago
A potential bullish reversal from the $6 mark will validate it as a high accumulation zone. To enforce the reversal theory, the coin chart showed the formation of a double-bottom pattern. Under the influence of this pattern, this polka dot coin price should breach the immediate resistance of $6.52, offering a higher footing level to encourage bullish growth.
Key points from Polkadot coin analysis:
- The DOT price shows a strong demand force below the $6 mark
- The double bottom pattern sets an 11% growth in market value
- The 24-hour trading volume in the Polkadot coin is $376.5 Million, indicating a 98% gain.
Source-Tradingview
Amid the recent sell-off in the crypto market, the Polkadot coin price plunged back to the July low support of $6.1-$6. Furthermore, the coin price spent nearly a week sustaining above this level, creating a narrow range between $6.52 and $6.
However, the technical chart displayed this consolidation as a double-bottom pattern. The famous bullish reversal pattern is often spotted at the market bottom, offering a recovery opportunity to coin holders.
Today, the Polkadot coin price is 4.52% up and shows a morning star candle at the $6 psychological support. With a sufficient boost in volume action, the coin price hits the pattern’s neckline resistance of $5.6.
A bullish breakout from this resistance will trigger the reversal pattern and drive the prices 11.5% higher to hit the $7.3 resistance. Anyhow, the coin price should reclaim the $8 psychological resistance to obtain a better possibility for price recovery.
On a contrary note, if the Polkadot coin price remains below the $6.52 resistance, the ongoing consolidation will last for a few more trading sessions.
Technical Analysis
Relative strength index: the daily-RSI slope shows a bullish divergence despite a price consolidation, indicating a gradual rise in underlying bullishness. This divergence also offers a better possibility for price recovery.
DMAs: the coin price trading below the crucial DMAs(20, 50, 100, and 200) indicates a bullish recovery will face multiple resistance ahead. Moreover, the 50 and 200 DMAs on the verge of bearish crossover could encourage more selling activity in the market
- Resistance levels- $10.6 and $11.8
- Support levels- $8.81 and $7.87
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/polkadot-coin-reveals-bullish-pattern-at-6-accumulation-zone-buy-now/