Polkadot (DOT) Price Closes Most Bullish Week Since July – Will it Keep Up Momentum?

CRYPTO_NEWS DOT

The Polkadot (DOT) price has yet to break out from long-term resistance levels in the weekly time frame. However, the daily chart supports the beginning of a bullish reversal which could then continue in the weekly time frame.

DOT has fallen underneath a descending resistance line since reaching an all-time high price of $55.09 in Nov. 2021. Throughout this period, it has been one of the biggest losers in the crypto market, falling by 88%.

 

In July 2022, the Polkadot price bounced at the $6.65 horizontal support area (green icon), creating a long lower wick in the process. However, DOT could not sustain this upward movement and a breakdown occurred in Sept. 

Now, the price is in the process of validating the $6.65 area as resistance. Since the area also coincides with the descending resistance line, its importance is increased.

 

While the weekly RSI has generated a considerable amount of bullish divergence (green line), it has yet to break out from its original bearish divergence trend line (black). Additionally, it is worth mentioning that last week’s candlestick represented the highest percentage increase since July.

 

Therefore, whether the Polkadot price breaks out from the line/area or gets rejected will likely determine the direction of the future trend. At the current time, the weekly time frame does not offer an accurate DOT price prediction.

 

Polkadot Price Prediction: Short-Term Chart Support Breakout

 

The price action from the daily chart is decisively bullish. 

 

Firstly, the RSI has generated bullish divergence (green) and broken out from its bearish trend line (black).

Secondly, the DOT price has broken out from a descending resistance line. After the breakout, it reached the highest price value of $6.84. After decreasing slightly over the past 24 hours, the DOT price seems to have regained its footing and could resume its upward movement. 

 

Lastly, it seems that there is a completed five-wave downward movement (black). 

As a result of these readings, a bullish reversal has likely begun both in the daily and weekly time frames.

The main resistance area is at $7.68, created by the 0.5 Fib retracement resistance level and a horizontal resistance area. 

If it reaches it, it will mean that the price has broken out from the previously outlined long-term resistance at $6.65. As a result, it would go a long way in confirming that a bullish reversal has begun. 

 

Conversely, a decrease below the Oct. 21 low of $5.73 (red line) would invalidate the bullish price prediction. Instead, it would suggest that the Polkadot price will fall towards the $3.90 support area.


 

Source : beincrypto.com/polkadot-dot-price-closes-most-bullish-week-since-july-will-it-keep-up-momentum/ by Valdrin Tahiri - November 01, 2022

Join our 60k+
tribe of Akters

Have any questions?

We're here to help.

Learn more

About the AKTIO coin

AKTIO is now live!

Learn more about the AKTIO coin

What’s new in the App?

We’re adding new features

Find out more about the App

Customer support

support@akt.io

+353 1 574 7382

Opening hours:

Monday to Friday: 9am - 5pm CET

Company

About

AKTIO coin

Careers

Learn

Blog

News

Glossary

AKT Academy

Help

FAQ

Sitemap

System Status

Follow our latest news

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata ICO Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Ltd, Reg number 12208424 and incorporated in the United Kingdom is the registered agent of Modulr FS Limited, a company registered in England with company number 09897919, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata Pay Europe Limited, Reg number 69028 and incorporated in Ireland is the registered agent of Modulr FS Europe Limited, a company registered in Ireland with company number 638002, authorised and regulated by the Central Bank of Ireland as an Electronic Money Institution (Institution Code C191242). Traditional currency is safeguarded as e-money in accordance with our regulatory obligations. Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata ICO Limited, Reg number 690280 and incorporated in Ireland has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS. It is important to note that a registration as a VASP is a registration for Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) purposes only. While Automata ICO Limited does have certain financial crime control obligations under this registration, cryptoasset services remain largely unregulated. The Financial Ombudsman Service or the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Automata ICO Limited.