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Polkadot could target $ 23 after DOT breakout




  • 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.

DOT


Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.
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