Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation
A current report explored whether or not Polkadot shaped a cup-and-handle sample and was getting ready for a pointy transfer upward. The promoting stress throughout the market previously few days ensured that such a transfer didn’t materialize. Nonetheless, the bulls nonetheless had some sway out there. But, it should be remembered that Bitcoin may have a powerful affect on the route of DOT within the weeks to return.
DOT- 1 Day Chart
Supply: DOT/USDT on TradingView
In late December, DOT fell out of a descending triangle sample (white) and plunged to $16. The previous few months have seen the value oscillate between the $16 lows and the $23.18 resistance stage.
In late March, the value was in a position to poke above the $23.18 stage, which is the next excessive and the beginning of a possible uptrend.
A set of Fibonacci retracement ranges (yellow) have been plotted from the swing low at $14.05 to the $23.85 swing excessive. The 61.8% and 70.2% retracement ranges have been examined as help.
A shopping for alternative will be discovered within the $16.15-$17.79 space, with the $23.85 and the $26.52 as potential value targets.
Rationale
Supply: DOT/USDT on TradingView
The RSI dropped under 50 in response to the sturdy drop from $23 previously two weeks. With a studying of 42, the momentum was not fairly strongly bearish, nor was the development on the every day bearish in response to the RSI.
The CMF additionally slipped beneath the -0.05 stage in response to the current wave of intense promoting. Nonetheless, the OBV supplied some solace to the bulls. It has not dropped beneath a stage that had been resistance in February, which meant that patrons nonetheless had some management over the route of DOT.
Conclusion
Polkadot has a bullish outlook for the subsequent few weeks, supplied Bitcoin doesn’t see a powerful drop beneath the $39k stage. This might spark additional worry out there. From a technical perspective, the market construction leaned towards the bullish aspect. Nonetheless, a drop beneath $16.15 may shift this bias.
