Journalist
Posted:
- Dot’s recent price action showed a strong rebound, but a confirmed trend shift required resistance near $ 5.60 and $ 6.20.
- Technical indicators, including RSI and advancing averages, suggested a cautious bullish prospect, because Dot is further looking for an upward impulse.
Polkadot [DOT] Shown signs of recovery after a long -term downward trend and almost 8% rose in the last trade session. The price increased from an opening value of $ 4,809 to close to $ 5,227, which caused the hope for a potential reversal.
However, the most important resistance and support levels determine whether DOT can support this momentum or undergo another withdrawal.
DOT’s technical setup: Resistance and support levels
The recent increase in Polkadot has brought it closer to critical technical levels. The first graph indicated that the 50-day advancing average (Mon) was $ 6.272, while the 200-day Mon was at $ 5,646.
Ma acts as major resistance levels, and a successful infringement above them would confirm a bullish trend.
Moreover, the Ichimoku cloud analysis suggests that dot remained under the cloud, which indicates that it should not yet break completely from Bearish territory.
Source: TradingView
In the meantime, at the time of writing, the relative strength index (RSI) was 42.78, which was still under the neutral 50 point. This suggests that although DOT is recovering, it is not yet in Bullish Territorium.
If RSI crosses over 50, this would indicate the increasing bullish momentum.
Fibonacci and Pivot Point Analysis
The second graph provides extra insights with the help of Fibonacci Retracement and Division points. Polkadot tested the S1 support level from this letter, that was around $ 5,174.
If this level applies, a movement to the R1 resistance could follow at $ 7.00.
Source: TradingView
However, a rejection from this point could push DOT back to its S2 support at $ 4.50. A break below this level would make the recovery story invalid, which means that DOT runs the risk of further disadvantage.
What is the next step for Dot?
To keep his recent profit, breaking above $ 5.646 (200-day MA) and to establish support above $ 6.272 (50-day MA). The RSI must also strengthen more than 50 to confirm the increasing buying momentum.
A strong close above these levels could pave the road for a movement to $ 7.00 and possibly higher levels. However, not holding above $ 5,174 can cause DOT to re -test lower supports at $ 4.50 and possibly $ 4.00.
Traders must keep a close eye on volume trends. An increase in volume would support a bullish breakout, while the decreasing volume could indicate a weakening rally.
DOT’s recent increase of 8% is promising for bulls, but has to overcome important resistance levels to confirm a long -term recovery. If DOT supports support over $ 5,174 and breaks past $ 6,272, this can go to $ 7.00 and beyond.
However, if you do not hold these levels, the recent rally may be at risk, which may lead to a different decline.