Polkadot (DOT) has bounced off the support at $15.80, indicating that the bulls have not given up and they continue to buy at lower levels. The RSI is showing signs of forming a positive divergence, suggesting that the selling momentum could be weakening.
The DOT/USDT pair could now rise to the downtrend line, which is likely to act as a strong resistance. If the price turns down from this level, the bears will again attempt to pull the pair below $15.80 and resume the downtrend.
Conversely, if bulls drive the price above the downtrend line and the 50-day SMA ($21.14), the pair could rise to the overhead resistance at $23.19. A break and close above this level will complete a double bottom pattern.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
The DOT/USDT pair could now rise to the downtrend line, which is likely to act as a strong resistance. If the price turns down from this level, the bears will again attempt to pull the pair below $15.80 and resume the downtrend.
Conversely, if bulls drive the price above the downtrend line and the 50-day SMA ($21.14), the pair could rise to the overhead resistance at $23.19. A break and close above this level will complete a double bottom pattern.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.