• Tue. Jun 18th, 2024

Polkadot (DOT): What Holders Can Anticipate in the Upcoming Days

Lisa Reyes

ByLisa Reyes

Oct 15, 2022
  • DOT saw a bullish divergence with the Chaikin Money Flow. Can immediate bounce-back trigger breakout rallies?
  • The token’s social dominance slumped while funding rates and development activity improved.

Polkadot bears capitalized on the broader cues to dominate the prevailing trend. The previous two months saw a sharp downturn that printed a reversal setup on DOT’s daily chart. The last three weeks saw the alternative token entering a high liquidity territory around the POC (Point of Control) at the $6.3 mark.

Therefore, a potential beneath or beyond some triggers might catalyze volatile movements in the upcoming sessions. While publishing this post, DOT changed hands at $6.22, gaining 7.03% within the past day.

The decline from the token’s April peaks amplified the bearish momentum to support persistent declines. That saw DOT testing a 22-month foothold at $6.1 over the past three months. Meanwhile, the intensified selling strength printed a descending channel.

Moreover, the 20 Exponential Moving Average and the 50 Exponential Moving Average remained southbound. A price close beyond the shackles of the top trend line of the descending channel and the 20 Exponential Moving Average might see DOT witnessing a short-term comeback.

(Advertisement)Artificial Intelligence Crypto Trading
CypherMind-HQ.com Artificial Intelligence Crypto Trading System – Get Ahead of the Curve with this sophisticated AI system! Harness the power of advanced algorithms and level up your crypto trading game with CypherMindHQ. Learn more today!

Such developments would have the initial massive resistance at the $6.7 – $6.8 mark. Considering the latest bullish hammers, buyers would aim for a closing beyond the current reversal setup.

Buyers should watch for declines from the closest support of $6.1 to recognize the probability of short-term plunges. That might delay the resurgence, with sellers aiming for a retest of the baseline at $5.6 before revivals.

Moreover, the CMF’s (Chaikin Money Flow) higher peaks triggered a bullish divergence with DOT’s price action to print a brief bullish edge. Nevertheless, the RSI (Relative Strength Index) was yet to secure a closing beyond the midline to authorize this narrative.

Latest Prices Massively Correlated with Token’s Social Dominance

DOT’s funding rate and development activity has increased consistently since mid-August. Despite that, the coin’s social dominance noted slight declines. Polkadot’s price struggled to ensure a decisive bullish run.

Considering the bullish hammer and the CMF’s bullish divergence, Polkadot bulls would target to overcome the limits of its downward channel. A closing beneath the support at $6.1 might authorize further downsides. Either way, targets would stay as highlighted above.

Lisa Reyes

Lisa Reyes

Lisa Reyes is a skilled and experienced news writer known for her compelling storytelling and in-depth research. With a dedication to delivering accurate and informative news coverage, her articles provide readers with a comprehensive understanding of current events.

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss Out On CypherMindHQ

#1 Artificial Intelligence Crypto Trading System

Sign Up Now

Try Crypto Engine With a Trusted Broker