- Polkadot price faces resistance at the 200-day simple moving average (SMA) as it holds the dominant upward trendline from July.
- The two levels of retracement define a critical area that will determine course direction for the coming weeks.
- The Polkadot Prize is up 19.51% for the fifth positive week in a row.
Polkadot has been a leader in relative strength since its July low, rising 185% from its August 21 high. By August 20, the rally was only interrupted by seven negative days, with just one day exceeding -4%. However, the intersection of the 200-day SMA with a series of highs in late May and early June has created the first real support for DOT since the July 7th high at $ 17.88.
To confirm the cautious outlook, the Polkadot price needs to close on a daily basis below the 38.2% retracement level and the rising trendline from July, which is currently at $ 24.57.
A daily close above the 50% retracement at $ 30.55 would negate the cautious outlook and turn the resistance area into support, suggesting better results for polkadot price in the future.
The catalysts for a longer and deeper retracement of the Polkadot price are in place: an extremely overbought value of the RSI on the daily chart, the bearish momentum divergence on the six-hour chart and the convergence of several significant highs and lows between the two Fibonacci Levels.