DOT price hit an All-Time High (ATH) of $19.24 - Technical Analysis
On 16th January, the DOT price hit an All-Time High (ATH) of $19.24, indicative of immense buying pressures. DOT prices were expected to rise further, but this rise was halted by falling Bitcoin prices. DOT price started falling steadily and till 19th January the closing prices were unable to go past the $17 resistance level. The news of big names from Salesforce and Lime joining the Board of CERE – the Polkadot aligned network also gave impetus.
Price Movement – DOT
|20-01-2021||16.61||18.14||14.88||17.93||$ 2.79B||$ 14.47B|
|21-01-2021||17.93||18.06||15.08||16.06||$ 4.49B||$ 14.86B|
|22-01-2021||16.04||17.97||14.87||17.13||$ 4.34B||$ 15.06B|
However, it rebounded on 20th January and hit the ceiling price of $17.76, which is the 1.618 Fabinocci level as well. It managed to close at $17.93 falling a bit short of the $18 mark. However, the DOT price started declining again on 21 January and closed at $16.06. On 22nd January, the DOT price recouped and closed at $17.13.
Source – https://www.tradingview.com/x/B5J2VrtA/
The fall post the ATH on 16th January also implies that some short-term investors wanted to take advantage of the sharp rally to make profits. But, since the bears did not pull down the DOT price below $14.7259 (38% Fibonacci retracement level) it means that there is no panic selling or aggressive profit booking. The investors are still bullish about the DOT price.
23rd January Analysis
At the time of writing this article, the real-time price of DOT is $17.82. The price is on an uptrend. If the DOT price manages to go past $18, then the following will be the resistance levels:-
|1||$18.65 (1.414 Fib Extension)|
|2||$20 (1.618 Fib Extension)|
|3||$20.42 (1.618 Fib Extension)|
|4||$22.38 (1.414 Fib extension – blue)|
|5||$24.60 (1.618 Fib Extension – blue)|
If all the above resistance levels are breached, the DOT price can go up to $30 in the coming days.
The Bitcoin fall has been arrested due to heavy inflows. The prospect of BITCOIN becoming a reserve currency has popped up again, as the Biden administration is expected to announce economic stimulus packages soon. This will serve as a catalyst for a rebound of Altcoins including DOT. So, we can expect a DOT price recovery in the next few days.
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