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DOT Technical Analysis: Will Uptrend Hit $50 As It Loses Momentum?

source-logo  cryptoknowmics.com 23 October 2021 10:17, UTC

DOT coin price rises higher with gradual growth in the underlying buying pressure. Hence, coin prices can soon reach above the $50 mark.

Polkadot is an open-source multichain sharding protocol that allows cross-chain transfers of all data and asset types.

This interoperability intends to establish a wholly decentralized and private internet controlled by its users. It also makes it simpler to create new applications, institutions, or services.

Let us now take a deep look into the technical analysis of Polkadot cryptocurrency.

Past Performance of Polkadot

DOT coin price continues to rise higher in an uptrend with multiple retracements in the path. Following the 22% last week, the coin price grew 6% this week (including only the weekdays). This shows a stagnancy in the uptrend. Also, as the price approaches the crucial level of $46, the stagnancy warns of a bearish reversal possibility.

Source - Tradingview

DOT Technical Analysis

As of writing, Polkadot's cryptocurrency value is $44.57. In addition, the cryptocurrency's value has fallen by 0.622% in the last 24 hours. Thus, projecting the short-term retracement to the support trend line.

The Pivot Points in the daily graph indicate that the following levels can play an important role. The $47 or $54 levels may be an obstacle in the bullish run. Low levels of $38 or $30 can act as support.

MACD and signal lines in the daily chart climb above the middle zero mark. The last bullish crossover ensures that the lines are still positive in bullish alignment. Therefore, the indicator has a bullish signal regarding DOT crypto.

Despite the slow downtrend, the RSI indicator shows a rise towards bullishness. This can be seen by the RSI slope's growing towards the territory of overbought. This signals a slightly bullish signal.

Upcoming Trend

The double-edged nature of the situation can be seen in the combination of technical indicators and the price action of Polkadot cryptocurrency. However, the bearish reversal possibility of a breakout and the bullish breakout opportunity overlap.

So, it's essential to be patient and not let fear get in the way of a breakout.

cryptoknowmics.com