- DOT’s recent price measures showed a strong rebound, but the confirmed trend movement required resistance to $ 5.60 and $ 6.20.
- Technical indicators, including the RSI and moving average, suggested a prospect of prudent strength as the DOT no longer pursues the amount of upward exercise.
Polkadot (DOT) showed signs of recovery after the extended decline, and almost 8%in the last trading session. The price was finished at $ 5.227 in the open value of $ 4.809, causing hope for the potential reversal.
However, major resistance and support levels determine whether the DOT can maintain this momentum or whether it can face another fullback.
DOT technology setting: Resistance and support level
Polkadot’s recent reference has made it closer to the important level of technology. According to the first chart, the 50 -day moving average (MA) was $ 6.272 and MA was $ 5.646 for 200 days.
MA acts as a major resistance level, and the successful violation above will confirm the optimistic trend.
In addition, the Ichimoku Cloud analysis suggests that the DOT remains under the cloud, indicating that it has not yet been completely out of the weak area.
Source: TradingView
On the other hand, at the time of writing, the relative robbery index (RSI) sat at 42.78, which is still less than 50 neutral. This suggests that DOT is not yet in the strong territory while the DOT is recovering.
If the RSI crosses to 50 or more, the signal will increase the strength of the strength.
Fibonacci and Pivot Point analysis
The second chart uses Fibonacci Retression and Pivot Points to provide additional insights. Polkadot was testing S1 support level at the time of this article, which is about $ 5.174.
If this level is maintained, the movement to R1 resistor of $ 7.00 can follow.
Source: TradingView
However, the rejection of this point can be pushed back to the S2 support of $ 4.50. This level of rest is invalidated by the recovery story, so the DOT is at risk of additional disadvantages.
What is the next of DOT?
To maintain a recent profit, you need to break more than $ 5.646 (200 days MA) and build more than $ 6.272 (50 days MA). RSI also needs to strengthen 50 or more to confirm the increase in purchasing exercise.
Stronger than this level can open a way to move to $ 7.00 and potentially improve higher levels. However, if you do not have $ 5.174 or later, you can re -test the lower support from $ 4.50 to $ 4.00.
Traders should watch the volume trends closely. The increase in volume supports the failure of the strong, while the decrease in volume can show rally weakness.
The recent increase in DOT’s recent 8% surge is a promising but continuous recovery to overcome major resistance levels. You can move to more than $ 7.00 if the DOT maintains more than $ 5.174 and exceeds $ 6.272.
However, if you do not maintain this level, the recent rally may be dangerous and potentially another stagnation.