A potential bullish reversal from the $6 mark will validate it as a high accumulation zone. To enforce the reversal theory, the coin chart showed the formation of a double-bottom pattern. Under the influence of this pattern, this polka dot coin price should breach the immediate resistance of $6.52, offering a higher footing level to encourage bullish growth.
Amid the recent sell-off in the crypto market, the Polkadot coin price plunged back to the July low support of $6.1-$6. Furthermore, the coin price spent nearly a week sustaining above this level, creating a narrow range between $6.52 and $6.
However, the technical chart displayed this consolidation as a double-bottom pattern. The famous bullish reversal pattern is often spotted at the market bottom, offering a recovery opportunity to coin holders.
Today, the Polkadot coin price is 4.52% up and shows a morning star candle at the $6 psychological support. With a sufficient boost in volume action, the coin price hits the pattern’s neckline resistance of $5.6.
A bullish breakout from this resistance will trigger the reversal pattern and drive the prices 11.5% higher to hit the $7.3 resistance. Anyhow, the coin price should reclaim the $8 psychological resistance to obtain a better possibility for price recovery.
On a contrary note, if the Polkadot coin price remains below the $6.52 resistance, the ongoing consolidation will last for a few more trading sessions.
Relative strength index: the daily-RSI slope shows a bullish divergence despite a price consolidation, indicating a gradual rise in underlying bullishness. This divergence also offers a better possibility for price recovery.
DMAs: the coin price trading below the crucial DMAs(20, 50, 100, and 200) indicates a bullish recovery will face multiple resistance ahead. Moreover, the 50 and 200 DMAs on the verge of bearish crossover could encourage more selling activity in the market
The Ethereum price remains steady near the $3,900 level after multiple failed attempts to reclaim…
Bitcoin price is hovering around $111,742, reflecting a 0.5% gain in the last 24 hours.…
Pepe coin price has remained under pressure despite renewed signals of investor repositioning in the…
HBAR price rose by 2.4% today, Oct. 24, mirroring the performance of the crypto market…
The Chainlink price has maintained steady traction near $17.6, with on-chain accumulation strengthening investor confidence.…
The Sui price has recently drawn investor interest after rebounding from a key demand zone,…