DOT Technical Analysis: Rising Wedge Keeps DOT Away From $10

Key Technical Points:

Past Performance of DOT

As predicted in our previous analysis, the DOT prices continue to rise with the trendline breakout rally and exceed the 100-day SMA. The price action shows a rising wedge pattern forming in the daily chart keeping bullish in check. Moreover, the recent bull cycle closes a bullish engulfing candlestick close to the resistance trendline teasing a potential breakout.

Source - Tradingview

DOT Technical Analysis

Currently, the DOT price action displays a bullish candle formation last night with a 7.28% jump with a spike in the intraday trading volume. However, the growing bearish influence over the present daily candle teases a bearish turnaround.

As the Polkadot market price sustains above the 100-day average price, the increased bullish influence results in a bullish reversal in the 50-day SMA. Hence, a potential bearish fallout rally can take support at the 50-day SMA.

The daily-RSI slope maintains a positive trend in the nearly overbought zone teasing a potential jump above the 70% boundary. Moreover, the MACD indicator shows a bullish trend in the fast and slow lines avoiding any bearish crossover.

In a nutshell, the DOT technical analysis maintains a positive outlook for the potential bullish breakout.

Upcoming Trend

If the DOT price trend sustains the buying pressure, the market value may break the resistance trendline shortly. Moreover, the breakout rally might exceed the psychological mark of $10 to reach the $11.83 mark.

However, a bearish reversal will retest the $8.75 breakout before a pos-retest reversal can give a bullish breakout of the rising wedge.

Resistance Levels: $10 and $11.83

Support Levels: $8.75 and $7