Polkadot Price Analysis – The DOT Token Shows A Steady Fall In Its RSI Chart

By October 3, 2021Polkadot
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dot
  • The DOT price has crossed above the 20-day EMA
  • The DOT/BTC pair tradING at 0.0006652 BTC, with a loss of 1.52%
  • The 24hr trading volume in DOT token is $1.37 Billion
Source- DOT/USD at Tradingview

The DOT token price has rebounded from the crucial support of the $26.4 mark, which has resulted in the formation of a double bottom pattern in the daily time frame. The neckline for this pattern is at $33.4, which could provide a great long opportunity for crypto trades if the price gives a strong breakout from this level.

However, even though the price suggests a bullish pattern, the RSI displays a counter-movement by making lower highs or lows, indicating weakness in the coin. Furthermore, The current value of RSI stands at 53.

Concerning the EMAs: the DOT token price is trading higher than the crucial EMAs (20, 50, 100, and 200), indicating a bullish trend. Moreover, the coin price has recently reclaimed the 20 EMA,

The DOT Token Crypto Chart In The 4hr Time Frame

Source- DOT/USD at Tradingview

The DOT token price is struggling to cross above the $34 resistance mark, displayed by an evening star candle. Though the price has not yet provided a proper follow-through candle for the bearish candle pattern, there is still a chance for the price to break out from the overhead resistance.

The MACD indicator (BULLISH) shows both the MACD line and signal line are moving higher than the neutral zone (0.00), indicating bullish momentum in the token. However, these lines are also on the verge of giving a bearish crossover, which would provide an excellent confirmation for a price reversal.

Conclusion: from the technical perspective, the overall trend of DOT token is still bullish. However, the significant 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 has approached a strong resistance of $34 by forming a double bottom. The proper confirmation for this pattern will only be obtained if the price gives a decisive breakout from this resistance.

Support – $33.4

Resistance – $26.4

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