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Vikram
Apr 4, 2022
by Vikram

DOT Technical Analysis: DOT buyers rechallenge the $23 resistance

DOT
The upcoming support trendline bolsters DOT buyers for a bullish breakout from $23. Can buyers expect a rally to the $30 mark?

Key technical points:

  • The DOT chart displays the 20-and-50-day nearing a bullish crossover 

  • The DOT/USDT pair appreciated nearly 43% in the last three weeks

  • Finally, the 24-hour trading volume of the Polkadot coin is $242.1 Million, marking a 12.3% rise.

    • Past Performance of DOT

    A descending triangle pattern governed the first two months of 2022. Under the pattern's influence, the sellers dumped the altcoin to $16, forming the crucial neckline support. However, the RSI bullish divergence indicated a rising bullish momentum, resulting in an upside breakout from the descending trendline.

    TradingView Chart

    DOT Technical Analysis 

    The post retest rally pierced the $20 physiological level and hit $23.4 resistance. Furthermore, the higher price rejection candles at this resistance suggested that the sellers defend this level with vigor. However, the rebound rally from the 20-day EMA undermined the sellers' pressure and now challenges the overhead resistance(23.3).

    As DOT buyers prepare for a bullish breakout from $23.3, the 200-day EMA hovering near this resistance may strengthen the defense line for sellers. However, on the other side, the rising 20-day EMA offers dynamic support to DOT price.

    RSI Indicator:  On March 27th, the RSI indicator marked a high of 66.3%, the highest since the latter half of November 2021. Moreover, the RSI slope shows a steady rally with no significant sign of weakness.

    In a nutshell, the DOT technical analysis shares a bullish bias, indicating a possible breakout from $23.4 for another leg-up.

    Upcoming Trend 

    A genuine breakout and closing above the $23.4 resistance would intensify the bullish pressure and pump the altcoin to 22% to the $28.5 mark. Moreover, the technical chart shows an upcoming support trendline that carries the bullish rally.

    Support Levels: $23.4 and $25.8

    Resistance Levels: $20 and $17.2

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    Polkadot DOT
    DOT Technical Analysis: DOT buyers rechallenge the $23 resistance
    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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