Polkadot price has rallied significantly since it dropped to $ 23.95. A surge above $ 30 provides significant psychological support for buyers and long term owners alike to see DOT break higher again.

DOT price must close above $ 32

DOT had encountered short-term resistance at the 38.2% Fib retracement level at $ 31.08 and the Tenkan-Sen at $ 31.66. It needs to close above these two levels to avoid short-term selling pressures. Ideally there would be enough momentum to close above the Kijun-Sen at $ 36 but that may not be possible.

After Saturday’s flash crash, an unfortunate event that caused the Relative Strength Index (RSI) to go from a bull market to bad shape. This does not mean or imply that polkadot is entering a bear market, but that momentum has subsided enough that traders can be cautious.

Even so, there are some bullish signs. First, there is a common bullish divergence between the candlestick chart and the composite index – an indication of a bullish reversal. In addition, the Optex Bands oscillator is moving uphill, leaving the oversold extreme it was in before.

DOT / USDT daily Ichimoku chart.

Given the current position of the RSI, Composite Index, and Optex bands, a break above $ 32 will likely have enough momentum to cause Polkadot to test the Senkou Span B at $ 40 for resistance.

Conversely, a failure to close above the Tenkan-Sen Polkadot would lead back to the 50% Fib retracement level at USD 26.

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