DOT’s price increased substantially throughout the past day, and this seems to indicate a bullish divergence.
Key Support level: $23
Key Resistance level: $32
Polkadot briefly fell below $23, but since then it has been steadily rising. During the recovery, the RSI has formed a large bullish divergence compared to the December 20th low. This has turned the momentum bullish for DOT, which is now moving quickly towards the key resistance at $32.
Chart by TradingView
Technical Analysis; Key Indicators
Trading Volume: The current rise is on good volume, but this is nothing out of the ordinary, considering the past few weeks.
RSI: The yellow arrows indicate a bullish divergence in the daily RSI as shown in the chart below. This was a signal for buyers that it was time to pay attention to DOT, and the price is now showing it.
MACD: It is a day away from a bullish cross on the daily MACD. This is good news for the bulls as DOT may enter into a sustained rally, at least until it faces the key resistance at $32.
Chart by TradingView
Bias
DOT currently has a bullish bias. This is supported by the indicators.
Short-Term Prediction for DOT Price
We may soon see the price reach $32 as DOT is on a mission. Keep in mind that the market’s overall momentum is an important factor to keep in mind.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
