DOT Technical Analysis: Price Below the Second Fibonacci Pivot Point of $29.61

Polkadot smoothens the process of cross-chain transfer of any asset class or data. DOT not only makes currencies transferable but also makes different blockchains interoperable. This feature of interoperability increases the scalability and use-case. Moreover, DOT bridges the gap between parachains and parathreads and connects them with external blockchain.

Past Performance

On September 15, 2021, DOT opened at $37.38. On September 21, 2021, DOT closed at $26.32. Thus, in the past week, the DOT price has decreased by approximately 29.58%. Whereas in the last 24 hours, DOT has traded between $25.56-$30.26.

https://www.tradingview.com/x/H59QwcuV/

DOT Technical Analysis

The Polkadot price is in an upward trend and is forming constant higher highs and higher lows. The trend of the coin remains bullish. A bull trigger can help DOT bounce up from its support level.

Currently, DOT is trading at $27.26. The price has increased from the day’s opening price. Thus, the market seems bullish.

The MACD and signal lines are in the positive zone. However, a bearish crossover by the signal line over the MACD line has occurred. Thus, the overall market momentum is turning bearish. Hence, the price may decline.

Currently, the RSI indicator is at 43.63%. It faced rejection at 60.45% and fell to this level. Thus, selling pressures are slowly mounting. We have to wait and watch if buying pressures become strong enough to bring about a bearish trend reversal.

On the daily chart, the OBV indicator is downward sloping. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the DOT price.

In short, when we look at all three oscillators, we can say that the price may continue to fall for the rest of the day. However, we cannot rule out the possibility of a trend reversal. We have to wait and watch if an intermittent price rise is a corrective action or the beginning of a positive trend.

Day-Ahead and Tomorrow

Currently, the DOT price is below the second Fibonacci pivot point of $29.61. If the bears remain strong till day end, then the price is likely to fall below the first, second, and third support levels of $26.07, $23.42, and $19.59, respectively.

However, on the upside, if the resistance of level $29.61 is broken, it will highlight the next resistance at $31.38, which can be kept as the target for the long call.

Tags

Share this post:

Share on facebook
Share on twitter
Share on pinterest

Post comment

Your email address will not be published. Required fields are marked *