Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
For over eight months, Polkadot [DOT] has been struggling to carry forth a change within the long-term bearish narrative. The final two weeks, nevertheless, have been considerably hopeful because the alt finds a place above the premise line (inexperienced) of the Bollinger Bands (BB).
While the current progress aided DOT’s transfer towards its instant provide zone within the $8.6-$9.1 vary, the sellers may intention to pose near-term hurdles. At press time, DOT traded at $8.62, up by 4.87% within the final 24 hours.
DOT Daily Chart
The revival from the alt’s 18-month low on 13 July has reignited the near-term shopping for stress. This renewed pressure helped DOT flip its four-month trendline resistance (yellow, dashed) to help.
Over the previous few weeks, DOT has been extending its bullish risky break. As a outcome, it saved hovering close to the higher band of the BB. Should the present candlestick reverse from the $8.6-$9.1 resistance vary, DOT may see a near-term setback. In this case, Potential targets would lie within the $7.3-zone close to the premise line of BB.
Traders/buyers ought to look ahead to a reversal from the instant resistance vary to establish the probabilities of this near-term drop. Any bearish invalidations or untimely bull runs could possibly be short-lived by the $9.8-mark resistance.
After escaping its sideways observe for almost a month, the Relative Strength Index (RSI) took a bullish stance and revealed an edge for the consumers. To alter this bullish outlook, the sellers wanted to check and finally breach the 56-mark help.
However, the Chaikin Money Flow (CMF) noticed decrease peaks whereas the worth motion marked larger highs. This affirmed a bearish divergence with the worth. Similarly, the Volume Oscillator resonated with the CMF and confirmed a bearish divergence.
In view of the instant resistance vary, overbought readings on the BB, and the divergences on the indications, DOT may see a near-term decline earlier than choosing itself up. The targets would stay the identical as mentioned above.
However, an total market sentiment evaluation turns into very important to enhance the technical components to make a worthwhile transfer.