Polkadot Price Analysis: The DOT Token Trying To Sustain Above The $30 Mark

By September 6, 2021Polkadot
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POLKADOT
  • The RSI shows substantial bearish divergence with respect to the token’s price action
  • The DOT/BTC pair was trading at 0.0006652 BTC with a gain of 0.48%
  • The 24 hr trading volume in DOT is $1.38 Billion
Source- DOT/USD on TradingView

On 1st September, the DOT token price gave a strong breakout from a crucial resistance of the $30 mark. This breakout must have lured many Crypto traders into taking a long position in this token. However, the current price of DOT token is still $33, as for the past four days, the price is hovering above the breakout level.

Concerning the EMA’s, the DOT token is in a strong bullish trend as the price is moving higher than the crucial EMA’s of 20, 50, 100, and 200. Moreover, the 20 EMA is providing strong dynamic support to the token’s price.

The RSI (BULLISH) value is at 69, indicating a bullish sentiment in the token. However, the investors can notice a bearish divergence in RSI which suggests that bulls are slowly losing momentum.

DOT Token Shows The Possibility Of A Double Bottom Pattern

Source- DOT/USD On TradingView

The DOT token shows the formation of a double pattern in the 4hr time frame. The pattern has its neckline at the $33.8 mark( traditional pivot level R3). And therefore, a breakout from this pattern could provide the follow-up candle of the breakout from the $30 resistance level.

The MACD indicator (BULLISH) shows the signal and MACD lines are moving above the neutral zone (0.00), indicating the momentum is still bullish. However, these lines are moving towards the neutral zone at a strong pace, suggesting the bears are trying to take charge here.

Conclusion: From the technical perspective, the overall trend of DOT token is bullish. And as mentioned above, the chart displayed an excellent opportunity with the breakout of $30 resistance. Thus, the DOT traders can wait for the price to complete the double bottom pattern of the lower time frame to confirm this bullish trade.

Support– $30

Resistance– $39-40

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