Rising Polkadot Coin Price Breaks A Crucial Resistance; Good To Buy?

On January 14th, the Polkadot coin price witnessed a significant inflow which surged the prices by 12% on the intraday level. Moreover,  this massive bullish candle breached the long-coming trendline, indicating a high possibility of potential recovery; how far this ongoing recovery may rise?

Key points:

• The Polkadot coin shows seven consecutive green candles in the daily time frame chart.
• The daily RSI line has jumped into the overbought region
• The 24-hour trading volume in the Polkadot coin Inu coin is $648 Million, indicating a 285% gain.

Source-Tradingview

Over the past eight months, the Polkadot coin price showed a classic example of a steady downtrend. A downsloping trendline accentuates this downfall and assists traders in aggressively selling at price rallies.

However, with the recent growth in the crypto market, the Polkadot coin rebounded from the 2022 low support of $4.233. The parabolic rally displayed an aggressive buying of the market, which surged the prices by 42.6%.to reach the current market value of $6.05.

Moreover, the gradual rise in volume during this rally projected the buyer’s confidence for further rallies. Thus, after breaking several resistances, the DOT prices have breached the falling trend of January 14th. 

Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023 

This bullish breakout reflects an early sign of price recovery, indicating the selling on rallies sentiment has been shifting to buy on tips. If the daily candle closes above the downloading trendline, the buyers could use this trendline to bolster the recovery rally. 

Thus, the post-breakout rally may drive the prices 35% higher to reach and hit the current price of $5.9. 

On a contrary note, a downfall below the trendline will offset the mentioned bullish  Cmomentiumprioce will undermine the selling thesis.

Technical indicator

MACD: the increasing gap between the MACD and signal line accentuates the rising buying pressure in the Polkadot coin.

Bollinger band: a  retest to the indicators’ upper band indicated aggressive buying in the market and a need for a price correction.

Polkadot coin price intraday levels

• Spot price: $6
• Trend: Bullish
• Volatility: Medium
• Resistance level- $6.7 and $30.5
• Support level- $0.567 and $17.7