NewsletterDOT Price Analysis: Post-retest Rally Aims For 25% Jump; Buy Now?
The $8.85 breakout rally aligned with decreasing volume indicates a loss of bullish momentum. Thus, a retracement to this breach resistance is plausible, which may offer a suitable launchpad for buyers to resume the ongoing recovery. Anyhow, Under the influence of a rounding bottom pattern, the DOT price should rise to the $11.8 mark.
Key points:
- The DOT price faces supply pressure at a 100-day EMA
- A potential pullback may plunge the DOT price 6.5% down to retest $8.85
- The 24-hour trading volume in the Polkadot coin is $385.7 Million, indicating a 26% loss.
Source-Tradingview
The DOT/USDT pair showcases a remarkable increase in demand near the $6.50 horizontal zone resulting in a bullish turnaround. Moreover, the recent reversal starts with a morning star pattern on July 27th, resulting in a price jump above the 50-day SMA and challenging the 100-day average line.
The bullish turnaround exceeds the $9 mark and accounts for a 41% price jump within three weeks. However, the high price rejection candles near the 100-day SMA project a potential bearish retracement to test the supporting curve.
However, the $8.8 breakout has the potential to reach the $10.4 resistance of if the DOT buyers beat the selling pressure at the 100-day EMA. Additionally, the bullish breakout of the overhead resistance might unleash the trapped bullish momentum and complete the rounding bottom pattern and reach the neckline at $11.88.
Conversely, a bearish reversal from the 100-day EMA cracking below the supporting curve will retest the crucial support level of $6.50.
Technical Analysis
EMAs: A bullish crossover of 20-and-50-day EMA gains a bullish spread, increasing the likelihood of an uptrend continuation. However, the high selling pressure at the 100-day EMA remains a crucial bearish milestone in the technical chart.
RSI indicator: the daily RSI slope sustains about the 14-day SMA in the nearly overbought zone, struggling to rise above the overbought boundary.
- Resistance levels- $10.5 and $11.8
- Support levels- $8.81 and $7.87
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