Polkadot Price Analysis – The Falling RSI Suggest A Substantial Fall For Dot Token In The Near Future

By September 19, 2021Polkadot
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Polkadot Price Analysis – The Falling RSI Suggest A Substantial Fall For Dot Token In The Near Future
  • The 20-day is providing strong support to the DOT token price
  • The DOT/BTC pair traded at 0.0007115 BTC, with a loss of 0.82%
  • The 24hr trading volume in DOT token is $1.58 Billion
Source- DOT/USD at Tradingview

The DOT token price showcased a steady rally in its technical chart, where the price is knocking out new resistance levels one after another. However, on 15th September, the token price faced strong resistance from the $38 mark, which resulted in another minor retracement in this token.

Though these retracements are good practice for a healthy uptrend, the RSI shows a contrary movement by making lower highs and lows. The current value of RSI is 50, which indicates a neutral sentiment for the token, but the overall picture states weakness in the bullish momentum.

Concerning the EMAs: The DOT token indicates a bullish trend where the price is trading higher than the crucial EMA’s(20, 50, 100, and 200). Moreover, the 20- EMA is providing vital support to the token price.

The DOT Token Crypto Chart In The 4hr Time Frame

Source- DOT/USD at Tradingview

After getting rejected from the $38 resistance level, the DOT token price is moving towards the important support of $32.5. The price had recently bounced from this level, but it is again dropping to the same level after falling to rise higher. However, if the token price fails to sustain above the support level this time, the retracement phase has not ended yet. The current price of the token is $33, with an intraday gain of 3.24%.

The MACD indicator (BEARISH) shows both the MACD line and signal line have just dropped below the neutral zone (0.00), indicating strong bearish momentum in the token.

Conclusion: from the technical perspective, the overall trend of DOT token is strongly bullish. However, the substantial bearish divergence in its RSI cannot be overlooked, and the Crypto trader must be cautious while trading in this coin. Furthermore, as mentioned, the price is currently in its retracement phase and about to hit the support of $32.5, which has the potential to continue the bull rally.

Support – $32.5

Resistance – $38

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