DOT Remains Pressured Below $9.0; Time To Buy?

The Polkadot price analysis indicates profit booking at a higher level. However, the correction from the higher levels was due following from an extended uprend that took price to $9.20. DOT has lost over 5% in price since then over the past hours. Price has been trading along the asecendign trend line.

• Polkadot price started the week on a lower note as selling emrges near higher levles.
• A strong support is playing around $8.10 level acting as double bottom.
• On the daily chart, DOT is transacting above the 50-day EMA, which suggests underlying bullish senitment.

DOT price trades sideways

DOT price gave a good rally in the  previous week, with an upmove of more than 40%, but faces rejection near the higher level around $9.0, which is also a resistance level. The price is trading in a “Channel pattern”. On July 31, the DOT price tries to break the channel resistance on the higher side but failed to do so, by giving rejection at $9.17.

The resistance level coincies with the highs of June 14, thus, facing resistance that was earlier acted as support. The Polkadot price analysis shows  that DOT’s price faces a strong resistance hurdle from $8.7 to $9.17.

On the hourly time frame, the price is making higher highs and higher lows, indicating bullishness. However, a possible reversal from the higher side, confirmed by below-average volumes concerns the DOT buyers at at least in the short term.

The momentum osciallotrs, MACD and RSI are also showing weakness, indicating a possible reversal below $8.15.

If the price fell below $8.15 on the daily basis, then we can expect a fall of around $7.5. 

On the other hand,  the emergence of buying pressure from the support level could result in an acceptance above $8.72. In that case we can expect a good momentum on the higher side. The first upside target would be the previous session’s high of $9.20 followed by $9.90.