DOT Prices Turn From $6.5 Teasing A Jump Above The $8.75 Mark
Table of contents
Key Points:
Source - Tradingview
DOT Technical Analysis
The bullish reversal in the DOT prices formed a rising wedge in the daily chart accounting for a price jump of 43% between 25th July and 14th August. After that, however, the prices took a bearish turnaround from the 100-day SMA and the overhead resistance trendline resulting in a bearish breakout.
The correction phase breaks below the 50-day SMA and accounts for a 25% price fall within a fortnight. The buyers, however, at $7, cushioned the downfall resulting in low price rejection candles and bouncing the prices higher.
A bearish influence over the daily candle accounts for a 1.57% drop, but the lack of trading volume projects the possibility of a bullish turnaround.
If the market price exceeds the 50-day SMA, the DOT prices can boom to the $8.75 resistance level. However, a downtrend continuation below $6.55 can result in a fall to the psychological mark of $5.
Technical Indicators
The RSI indicator displays a bullish reversal within the nearly oversold zone, attempting to rise above the halfway line, showing a potential surge in the underlying bullishness.
The fast and slow lines in the MACD indicator project a possibility of a bullish turnaround, teasing a crossover event. Hence, the technical indicators maintain a bullish bias for the DOT prices.
Resistance Levels: $8 and $8.75
Support Levels: $6.55 and $5