Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation
Polkadot climbed previous $17.5 on the charts and flipped it to assist earlier than its transfer towards $19- however shopping for stress appeared to be missing within the near-term outlook. Bitcoin was buying and selling simply above the $39k mark, and the short-term path of the king of crypto on the charts was not too clear both. Weekends are additionally instances of decrease liquidity. Will Polkadot’s rally push it previous $19 or was the promoting stress more likely to be dominant?
DOT- 1H
Supply: DOT/USDT on TradingView
Previously week, Polkadot had traded inside a spread from $16.17 to $17.57. This mid-point of this vary was at $16.87 and had some confluence with a longer-term assist stage at $16.81. Previously few days, DOT has discovered some assist at this confluence of assist ranges.
On the primary try at a breakout previous the vary highs, DOT was unable to carry on to the vary highs as soon as $17.6 was flipped to assist. Bitcoin noticed a pullback to $38.8k from $42k and DOT was pressured decrease as effectively.
On its second try, the value was capable of set up the next excessive (near-term) and in addition discover demand at $17.6, which meant that the short-term market construction was bullish.
To the north, the $19 space posed important resistance to the bulls’ endeavors. Due to this fact, a near-term shopping for alternative might come up if this stage had been flipped to assist. To the south, the $17.6 would want to stay unbroken for DOT to climb larger. A session shut beneath $17.6 might see DOT fall again towards $16.2.
Rationale
Supply: DOT/USDT on TradingView
The RSI stood at 62.16 and confirmed robust bullish momentum in latest hours. Nonetheless, it additionally displayed a bearish divergence between worth and momentum. The Superior Oscillator additionally gave the impression to be forming a decrease peak at the same time as the value pushed larger.
Alongside, the OBV confirmed that purchasing quantity has not been significantly excessive after the retest of $17.6.
Conclusion
The symptoms confirmed that the subsequent few hours would possibly see a pullback to the $17.6 area for Polkadot. $19 posed robust resistance and can be utilized as a take-profit stage. A transfer again beneath $17.6 within the subsequent couple of days would probably see $16.8 and $16.2 revisited. A transfer above $19 and retest as assist would additionally current a shopping for alternative within the close to time period.
