- 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.
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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.