Categories: Market

DOT price needs to close above $ 32 to avoid dropping to $ 26

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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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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