Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
alt HD: Polkadot respite in the price charts, can buyers follow in the coming weeks?
Polkadot’s development activity has risen steadily during the months of April and May, even as the price slipped past the support levels on the price charts. Bitcoin was also indecisive in the $30k area, and both BTC and DOT have strong resistance levels in the north. Could a recovery be just around the corner and can Polkadot post strong gains in the coming weeks?
DOT-1 hour chart
In February and March, DOT appeared to be trading within a range from the USD 23.18 resistance level to the USD 14.24 support level. However, in the wave of intense selling in May, DOT sank much lower on the charts, even diving below the $7.44 support. This support level was previously tested in January 2021.
At the time of writing, the bulls and bears were skirmishing in the $10 area, with $10.5 also being a significant horizontal level to watch. In recent weeks there has been significant trading volume as the price fell sharply but bounced slightly.
Does this mean the bottom is in for DOT? Not necessary. The long-term bias for DOT should remain bearish on the charts until DOT can move past the USD 14 level, and bulls may be able to defend the USD 12-$14 area on another test.
Over the past two months, the RSI has been below the neutral 50 for quite some time, indicating an ongoing bearish trend. The Awesome Oscillator was also below the zero line, highlighting the bearish bias.
However, the RSI was able to climb past 40 and the AO has also seen weakening downward momentum in recent days. This signaled a pullback in the downtrend and could be followed by another push south.
The A/D has also fallen, meaning sales have been dominant over the past month.
The drop below $10 was cushioned by buyers, but the trend remains bearish. In addition, Bitcoin is also experiencing heavy resistance above that. Therefore, further losses for Polkadot may be just around the corner. The bulls should regain the $12-$14 area before the longer-term bias can shift in their favor.
This post Polkadot sees $7.5 rise, but bulls can bet on further gains
was published first on https://ambcrypto.com/polkadot-sees-a-bounce-from-7-5-but-can-bulls-bet-on-further-gains/