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The DOT Coin Price Bounced From $27 Support With A Morning Star Pattern

source-logo  thecoinrepublic.com 10 September 2021 20:38, UTC
  • The RSI line shows substantial bearish divergence concerning the DOT coin price action
  • The DOT/BTC pair was trading at 0.00006405 BTC with a gain of 1.35%
  • The 24hr trading volume for the DOT coin is $3.91 Billion
Source- DOT/USD on Tradingview

The DOT coin suffered an 18% drop on 7 September, just like many other coins in the Crypto market. However, the DOT coin price managed to hold above the critical support of $27, with a long lower price rejection, indicating that some buying pressure is still present. Also, forming a bullish morning star pattern at this level gives the coin a greater chance of bullish reversal.

The EMA’s indicates a bullish trend for DOT price is trading higher than the critical EMA’s 20, 50, 100, and 200. The chart also shows that there could be a bullish crossover between the 20 and 100 EMAs, which will attract more buyers to this market.

The RSI (BULLISH) current value is 53, indicating a bullish sentiment in the DOT coin. However, the RSI line shows a bearish divergence with the coin’s price action, indicating that the bulls are slowly losing momentum.

DOT Coin Crypto Chart In The 4hr Time Frame


Source- DOT/USD on Tradingview

The DOT coin price was struggling to cross a minor resistance level of the $32 mark. However, the price showed strong rejection from this level with a bearish engulfing pattern. Thus, the price could go back to test the $27 support before continuing with a directional move.

The moving average convergence/divergence indicator (BEARISH) shows both the MACD signal lines are moving above the neutral zone(0.00). However, it seems that these lines are on the verge of giving a bearish crossover, projecting a sell signal for its traders.

Conclusion:  From a technical perspective, the price of DOT coins suggests a bullish outlook for both the indicators and price action, which is a good setup for the trend-traders looking for opportunities on the Crypto market.

As we mentioned, the coin price has bounced the $27 support level with a morning star pattern. However, the price is yet to provide a proper follow-up candle.

Support: $27

Resistance: $32

thecoinrepublic.com