The price of Polkadot (DOT) has broken above the moving average line, indicating an upward trend; however, the price is still trading below the 50-day line simple moving average (SMA). To put it another way, Polkadot is having trouble trading lower below the $8.00 resistance zone.
Since the 19th of August, purchasers have been making a concentrated effort to overcome the resistance level of $8.00. The fact that the wicks on the candles are so long provides evidence that there is intense competition from buyers at higher price levels within the $8.00 resistance zone.
The price of DOT will reach $9.64 if buyers are successful in breaking either the 50-day line SMA or the $8.00 resistance level. If, on the other hand, DOT breaks away from its most recent high, the moving average lines will compel it to trade in the middle of the two lines. If the price drops below the moving averages, Polkadot will continue to decline until it reaches the lows it reached previously, which were $6.52 and $5.98 respectively.
Analysis using the polka-dot method
According to the Relative Strength Index, Polkadot is currently at level 54 for the period 14. The alternative cryptocurrency is now trading in an uptrend zone and has the potential to continue its ascent. The price bars for cryptocurrencies are located between the lines that represent the moving average, which suggests that the price of cryptocurrency may vary within a particular range. The price of altcoins is currently trading at a level that is higher than the 70% range of the daily stochastic. The market is currently exhibiting momentum that is optimistic.
What are some potential future steps for Polkadot?
Buyers are pushing Polkadot towards the $8.00 resistance zone, which has caused the altcoin to enter an upward correction. The overhead resistance for the altcoin is located around $9.68, and it could be retested if the recent high is broken. If buyers are successful in breaking over the barrier of overhead resistance, the cryptocurrency will resume its upward path. If the alternative coin moves further away from its most recent high, the bullish scenario will be rendered incorrect.