DOT has solid support and is likely to climb to $ 70

The DOT weekly Ichimoku chart looks very healthy and shows clear support. Compared to its competitors, DOT’s downside risk is fairly limited.

DOT price recently ended a sell-off triggered by a strong cycle in Gann’s analysis known as the “cycle of death”. This is a seven week (49 to 52 day) cycle that Gann warns it could end any move that shows persistently high price volatility. In addition, the three-week correction after the “cycle of death” is the most common reversal period.

DOT trades at the strongest support level on the weekly chart. The Volume Point of Control for 2021 and the weekly Kijun-Sen share the USD 33.5 area where the DOT appears. To confirm the continuation of the previous uptrend, the DOT price must now reverse and close above the weekly Tenkan-Sen at $ 42.

The RSI shows initial support against the first oversold level in the bull market (50). When 50 holds, the DOT will likely bottom out. Additionally, the Composite Index has created potential bullish divergence – often a precursor to a rally in a previous bull market.

DOT / USDT weekly Ichimoku chart. Source: TradingView

However, downward pressure and risks remain for this altcoin. If the $ 33.5 value area is not considered a support, the next support to watch is the top of the cloud (Senkou Span A) at $ 29.5. Any daily or weekly close below $ 29.50 could trigger faster and stronger selling pressure as the volume profile thins and the price drops. In other words, the loss of the $ 29.5 support, the easier it is for DOT.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Annie

According to Fxstreet

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