- Polkadot is on the way to recovery after correcting earlier this week.
- The uptrend appears limited by double technical resistance at $ 31.76.
- Once that is overcome, buyers have an incentive to go as low as $ 37.02.
For a long time, Polkadot (DOT) was not the easiest of all cryptocurrencies for buyers looking for good entry levels. The buy-the-dip strategy turned out to be difficult because there were no fundamental entry levels. On September 7, the price looked good just above the 55-day Simple Moving Average (SMA), but not many buyers will have dared to catch the falling knife at $ 22.
Polkadot shoppers set their flag back above $ 32.50
The false breakout at $ 29.12 on September 8th will likely have drawn some buyers into a bull trap, and they did not see a positive P&L on their entry that day. Only the really patient buyers with a strict plan will have the courage and the necessary stop to stay in the trade and survive another day. Seasoned traders will have waited another day for the dust to clear and will have appreciated the entry between the monthly pivot at $ 26.64 and $ 27.22. The course of the course bounced off these levels perfectly.
The candle body was supported by the 200 day SMA at $ 27.81. This gave the buyers three good reasons to get started, as the price action seemed healthy and logical after the fluctuations of the previous days.
Buyers have already attempted to recapture the $ 31.76 level and green July 20th ascending trendline, but failed on their first attempt. A second attempt seems to be underway today, as the price is firmly above the $ 29.12 level and an attack on the $ 31.76 level already took place during the Asian session. It is now important for DOT to end the week above this mark.
DOT / USD daily chart
Expect to retest the $ 29.12. This level should stay within the uptrend. Favorable tailwind from the return of global markets to risk taking should help attract more buyers into the DOT. As soon as the price rises above $ 32.50, expect further upward movements. At the end of the US session, a close above this level would mean another uptrend towards the $ 37.02 level for the next week.