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Vikram
May 18, 2022
by Vikram

DOT Technical Analysis: Back At $10, DOT Holders Get Nervous

DOT
DOT prices crossed the $10 barrier last week but struggle to sustain and retest the breakout. Is it a retest or a bullish failure ready to break below $10?

Key technical points:

  • DOT prices fell 45% in the 30 days.

  • MACD and signal lines merge in the negative territory.

  • The 24-hour trading volume of Polkadot is $841 Million, indicating a 3.77% surplus. 

    • Past Performance of DOT

    The falling channel in the DOT prices showcases a correction phase driving the overbought prices under the market value. Starting from the top of the falling channel at $22.85, the downtrend breached the $10 barrier but currently resurfaces above it. 

    TradingView Chart

    DOT Technical Analysis 

    DOT prices showcase a flattish trend with growing bearish influence above the psychological barrier of $10. However, the falling trend in volume reflects the liquidation of high-leverage positions and brings stability to the price trend. This keeps a neutral motive till the actual price develops.

    The falling trend in the crucial 50, 100, and 200 EMAs continues in a bearish manner due to the recent loss of an upward-looking crossover. The 50-day EMA returns to the 100-day ESMA and the beginning of a falling channel.

    The downtrend in the RSI slope (blue line) shifts into neutral gear below the halfway line after crossing above the 14-day SMA. As for the MACD indicator, the gradual reversal in the fast line merges with the signal line in the negative territory.

    Hence, the technical momentum indicators in DOT/USD chart show a gradual rise in underlying bullishness, but the question of its sustenance still stands.

    Upcoming Trend

    Considering the liquidating positions were bearish, it will long-squeeze the DOT prices higher above the $10 mark and hit the 50-day EMA at $15. However, a fall under $10 will retest the $7 mark.

    Support Levels: $10 and $7

    Resistance Levels: $12 and $15

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    Polkadot DOT
    DOT Technical Analysis: Back At $10, DOT Holders Get Nervous
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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