- DOT continues to soar, aided by the rediscovered interest in cryptocurrencies.
- DOT has to cross the double resistance level of $ 27.
- Further upward movements are possible as long as the tail wind persists.
Polkadot (DOT) has seen an excellent upward move. A highly regarded green ascending trendline has formed that will continue to grow in importance and strength in the coming days. On the upside, however, the price development is limited for the time being as the 200-day SMA (Simple Moving Average) at $ 27 and the high of June 4th block the way. The risk of a double top formation could mean problems for the price development in the short term. DOT could face a minor correction to the downside, with a test of the green trendline being supportive.
DOT is in a triangle formation
But don’t expect the price rise to come now. An upward break out of the triangle is more likely at the end of August. Buyers will have to step in every time and defend the rising green trend line. This will force short sellers out of their short positions with the stops placed just above the $ 27 mark. It is expected that these stops will be followed as the price breaks higher and that buyers will target the $ 29 level as the next level of profit taking.
DOT / USD daily chart
So the polkadot will continue to rise. The ultimate mark to watch out for is $ 31.76 after $ 29. It will be crucial that the green ascending trend line remains confirmed. Should this give way, a lot of pressure can be expected on buyers, with prices falling to $ 16.95. DOT has orange horizontal support that originated on May 24th. It is of significant interest as price first broke it around August 4th, then retested it and bounced off that level to continue higher. This is the best possible technical setup for a long position. Should DOT correct, this level can be expected to be defended by buyers who set their stops just below $ 16.