Polkadot Experiences Correction After Reaching $5.54: What’s Next In Store?
Yesterday, Polkadot (DOT) reached its weekly high at $5.54 but
subsequently started a corrective phase. In the past 24 hours, DOT
has managed to retain 1.8% of its overall gains during that period.
On the weekly chart, DOT exhibited a 3% price increase. However,
the technical analysis suggests that bears currently have the upper
hand, with buying strength and demand remaining low. Despite this,
if Bitcoin continues its upward movement toward the $28,000 level,
several altcoins, including DOT, may also experience positive price
action. Related Reading: Dogecoin Bounces Off $0.070 Mark, Awaits
Breakthrough of Crucial Hurdle On the flip side, if sellers
dominate, DOT could break below its crucial support level,
strengthening the bearish sentiment in the upcoming trading
sessions. The decline in the DOT market capitalization further
indicates the prevailing low buying strength at the present moment.
Polkadot Price Analysis: One-Day Chart At the time of writing, DOT
was trading at $5.47. Following a rejection at the $5.54 level, the
altcoin has experienced a retracement on its chart. The overhead
resistance for DOT is currently positioned at $5.58. If the altcoin
manages to surpass this resistance level, it could potentially
reach $5.80. Despite the price correction, DOT has thus far
maintained a position above the crucial support level of $5.40.
However, if sellers gain momentum, the price may drop below the
vital support level of $5.40 and trade around $5.30. The trading
volume of DOT in the previous session was bearish, indicating a
decline in demand driven by the bears on the daily chart. Technical
Analysis Throughout the month of May, DOT has experienced minimal
demand on its chart. Although the Relative Strength Index (RSI)
displayed signs of recovery initially, the depreciation of DOT led
to a decrease in demand. This suggests that buying strength did not
enter the positive zone. Furthermore, the DOT price moved below the
20-Simple Moving Average (SMA) line, indicating that sellers have
been driving the price momentum in the market. If there is a slight
increase in demand in the upcoming trading sessions, DOT may
attempt to trade above the 20-SMA line, providing an opportunity
for the bulls to regain control over the price. Although demand for
Polkadot has declined, the chart still displays buy signals,
suggesting the potential for a price increase. These buy signals
are accompanied by an increase in demand, indicating a positive
outlook. The Moving Average Convergence Divergence (MACD)
indicator, which reflects price momentum and trend changes, shows
green histograms tied to buy signals. Related Reading: Floki Inu:
Does Meme Coin Have What It Takes To Re-Enter Top 100 Spot?
Additionally, the Bollinger Bands, which measure price volatility
and fluctuation, are constricted, suggesting that Polkadot may
experience significant volatility in the upcoming trading sessions.
Featured Image From UnSplash, Charts From TradingView.com
から 8 2023 まで 9 2023
から 9 2022 まで 9 2023