Since the beginning of October, Polkadot’s price has been falling steadily. Although it has reached its support level of $6.30, the price has traded very close to this support level. The coin plunged after it fell below $6.66.
In the past month, it retested the $6.30 mark. Bullish pressure has been building in the technical outlook. The altcoin’s price has held between $6.58 and $6.30 during the trading session. DOT continues to be rejected at $7, which had been the level that exhausted the bulls.
Broader market weakness is also to be blamed for DOT’s mundane price action. DOT briefly traded below the support line of $6.30 in July which had led to a sell-off on the chart. There is a sign that the indicators are showing signs of buying strength. If buyers regain their momentum there is a possibility for DOT’s immediate resistance to be overcome.
Polkadot Price Analysis: Four Hour Chart
At the time this article was written, DOT traded at $6.53. The $6.66 resistance level could be reached if the price of DOT continues to rise. Polkadot may attempt to reach the $7 price ceiling once it has moved above $6.66.
Polkadot trading above $6.80 could make the bullish thesis invalid. However, DOT could be forced to drop below $5.90 if it is too stuck at its current price for too long. Polkadot saw a decrease in trading volumes, which suggests that the market’s buying power was still lower.
Technical Analysis
As the coin moved higher, DOT pictured a recovery in buying power. The four-hour chart showed an increase in buying strength. Relative Strength Index rapidly climbed above zero in accordance with the same. If the reading is above zero, it means that the market was under buying pressure.
It is too early to say if the bearish action is fading out, DOT’s price action could also be a brief relief rally. As demand for the coins increased, the price of DOT also surpassed the 20-SMA. It was clear that buyers drove the market’s price momentum.
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Altcoin has captured price increases and displayed them in technical indicators. The Awesome Oscillator tracks price movements and records reversals. AO pictured the green histograms to indicate price direction.
These green histograms in the AO indicated that the coin was being bought. Bollinger Bands point to price volatility or fluctuations. It was evident that the price of DOT would trade at approximately the same level over the next trading session due to the narrowing of these bands.
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Featured Image from The Market Periodical. Chart from TradingView.com
