The recent bear cycle sunk the Polkadot(DOT) price to $17 support, registering a 26.3% loss. The altcoin retesting this range bottom support under the influence of RSI divergence suggests that history may repeat itself and revert the price to higher levels. However, a breakout from either level of the range will determine the upcoming trend.
Key points:
- The $20 is a troublesome barrier for DOT buyers
- Range breakout will trigger a directional move in DOT price
- The 24-hour trading volume in the Polkadot coin is $662.3 Million, indicating a 63.5% gain.
Source-Tradingview
Since the January bloodbath, the Polkadot(DOT) price has been wobbling between the $23.5 and $16 levels, marking a range-bound rally. Furthermore, the recent reversal from the overhead resistance triggered a sharp sell-off of 26.5% and plunged the coin price to the $17 support zone.
As DOT price retest the $17 mark with a 60% pump in trading volume, it is likely the sellers may dumb the coin to $16 bottom support.
Responding to the bullish RSI divergence, the DOT/USDT pair may rebound from the bottom support and continue the sideways rally. However, the bull cycle needs to break a shared resistance of $20 psychological level and 100-day SMA before reaching the $23.5 mark.
On a contrary note, a daily candlestick closing below the $16 mark will invalidate the bullish thesis and sink the altcoin 18.5% down to $13.
Technical Analysis
The downsloping 100-and 200-day SMA reflects an overall bear trend, while the 50-day highlights the current range rally. Moreover, the 50 and 100 SMA moving near the $20 resistance mounts a strong defense ahead.
The daily RSI slopes presented a bullish divergence regarding the two retests on April 11th and 18th. This divergence projects rising bullish momentum near the $17-$16 support zone, suggesting a reversal opportunity.
- Resistance levels- $20, and $23.5
- Support levels- $17-$16 and $13
Disclaimer
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.
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Source: https://coingape.com/markets/rsi-divergence-may-push-dot-price-back-to-23/