Published 2 hours ago
The $8.85 breakout rally aligned with decreasing volume indicates a loss of bullish momentum. Thus, a retracement to this breach resistance is plausible, which may offer a suitable launchpad for buyers to resume the ongoing recovery. Anyhow, Under the influence of a rounding bottom pattern, the DOT price should rise to the $11.8 mark.
Key points:
- The DOT price faces supply pressure at a 100-day EMA
- A potential pullback may plunge the DOT price 6.5% down to retest $8.85
- The 24-hour trading volume in the Polkadot coin is $385.7 Million, indicating a 26% loss.
Source-Tradingview
The DOT/USDT pair showcases a remarkable increase in demand near the $6.50 horizontal zone resulting in a bullish turnaround. Moreover, the recent reversal starts with a morning star pattern on July 27th, resulting in a price jump above the 50-day SMA and challenging the 100-day average line.
The bullish turnaround exceeds the $9 mark and accounts for a 41% price jump within three weeks. However, the high price rejection candles near the 100-day SMA project a potential bearish retracement to test the supporting curve.
However, the $8.8 breakout has the potential to reach the $10.4 resistance of if the DOT buyers beat the selling pressure at the 100-day EMA. Additionally, the bullish breakout of the overhead resistance might unleash the trapped bullish momentum and complete the rounding bottom pattern and reach the neckline at $11.88.
Conversely, a bearish reversal from the 100-day EMA cracking below the supporting curve will retest the crucial support level of $6.50.
Technical Analysis
EMAs: A bullish crossover of 20-and-50-day EMA gains a bullish spread, increasing the likelihood of an uptrend continuation. However, the high selling pressure at the 100-day EMA remains a crucial bearish milestone in the technical chart.
RSI indicator: the daily RSI slope sustains about the 14-day SMA in the nearly overbought zone, struggling to rise above the overbought boundary.
- Resistance levels- $10.5 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/dot-price-analysis-post-retest-rally-aims-for-25-jump-buy-now/