Since hanging its all-time excessive on 4 November, Polkadot (DOT) sellers refused to surrender their edge till the bulls halted the downslide on the $16.8-mark. The newest restoration pushed the alt above its four-month-long trendline resistance (now assist).
Going ahead, DOT might see a near-term setback in direction of the $21-$22 vary as the worth hovered close to its ten-week resistance. A detailed beneath its excessive liquidity vary (Level of Management/POC) might heighten the prospects of a check of its long-term trendline assist earlier than the bulls attempt to push for a bonus. At press time, DOT traded at $22.85.
DOT 4-hour Chart
Supply: TradingView, DOT/USDT
The bearish section (from its ATH) led the alt to lose greater than 74.5% of its worth and plunge towards its seven-month low on 24 February.
The current bullish rally marked bullish trendline assist (white, dashed) whereas the alt crossed the 20/50/200EMA. The alt snapped its four-month trendline resistance and flipped it to assist. This rally has seemingly discovered a hindrance close to its POC the place the conflict between the consumers and sellers has spiked in the previous few days.
The present worth was nonetheless not overstretched from its 20-50 EMA. Thus, rising the possibilities of excessive volatility within the days to return. From right here on, any shut beneath the POC might trigger a check of the decrease trendline of the rising wedge (white). Following this, the bulls might collect sufficient power to check the $23-zone earlier than a development commital transfer.
Rationale
Supply: TradingView, DOT/USDT
The RSI has steadily marked decrease peaks within the final eight days because the bears stored exhibiting elevated stress. This trajectory was opposite to the worth motion throughout this timeframe. Thus, revealing a bearish divergence on the 4-hour chart.
Moreover, the CMF conformed to the RSI and paved an identical path whereas affirming a bearish divergence with worth. Thus, the near-term restoration can halt on the trendline resistance.
Conclusion
Contemplating the potential of the divergences on the RSI and CMF, any recoveries can discover hindrance on the $23-zone. A detailed beneath the POC would place DOT for a short-term setback in direction of the $21-$22 vary earlier than the bulls can reclaim their edge.
Moreover, an general market sentiment evaluation turns into important to enhance the technical elements to make a worthwhile transfer.
