Polkadot (DOT) Picking Up Momentum To Go Towards $55

By November 11, 2021Polkadot
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Polkadot (DOT) had been rallying across the board and holding the critical level of $40, while bulls keep dominating the scene around the 200-period simple moving average. The H4 chart shows an increasing interest of buyers around $48, leading the crypto to reach new highs above $56.

The price action around the 200 SMA unveils a bullish candlestick formation where the sellers were rejected after the RSI indicator flashed an oversold signal. Around that area, buyers were highly active at the end of October as DOT entered a stagnation phase that got resolved into a strong upwards breakout that took the altcoin higher.

So far, Polkadot is attempting to develop a lower high and lower lows structure, but the rebound around the 200 SMA confirmed that the pullback was a corrective move in the middle of the bull-run.

As of press time, DOT exchanges hands at $48.22, up 3.12% on the day, pocketing some gains after losing ground during such leg lower formation.

Still, for the bulls to regain control of the situation from the broad picture perspective, the 50-period simple moving average should give up to allow a healthy rally to refresh the monthly highs and eventually lead the cryptocurrency to test the $58 handle, followed by the critical supply zone of $60.

Eyeing The $25 Level?

In case of increasing pressure on the price action, if Polkadot’s coin plummets below the 200 SMA with a two-candlestick closure at the H4 chart, eyes will be on the $34 level which belongs to the congestion zone formed during mid-October.

That said, if sellers also want to go beyond such a hurdle and the bears manage to break below $30, there would be enough room for the altcoin to test the next tough nut to crack at $25.

The RSI indicator stays in the negative territory, favoring the sellers momentarily, although the scenario could change once DOT cracks above the 50 SMA.

This article was originally posted on FX Empire


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