<![CDATA[Observing Polkadot's near-term price action as the new ATH approaches]]>

<![CDATA[Observing Polkadot's near-term price action as the new ATH approaches]]> https://usagag.com/2021/10/30/observing-polkadots-near-term-price-action-as-the-new-ath-approaches/ Sat, 30 Oct 2021 03:39:00 +0000 hourly 1 https://usagag.com Observing Polkadot's near-term price action as the new ATH approaches However, a broader market correction, combined with red flags on the MACD and RSI, suggested that DOT would trade sideways before breaking above its immediate price ceiling of $46.3. DOT was trading at $42.3 at the time of writing, up 0.2 percent in the previous 24 hours.

Polkadot Daily Chart

polkadot dialy chart

A quick glance at DOT's daily chart revealed that the alt only needed to break through its immediate resistance at $46.3 to set a new ATH above $50. Given that healthy buy volumes consistently pushed DOT by nearly 80% in September, such a feat would not be difficult to achieve.

However, near-term jitters caused by a bearish crossover along the MACD may cause the eventual breakout to be delayed for a few more days. A well-established support level of $40 would look to prevent any extended drawdowns and allow DOT to maintain its bullish bias.

A closer look at the daily RSI revealed that a downward sloping trendline had been broken, indicating a possible shift in momentum towards the sellers. If the RSI falls below 45, DOT will maintain immediate support, with $38.7 and $36.8 as additional defenses.

In the meantime, the Directional Movement Index would keep sellers at bay. The +DI line is still trading above the -DI line, which may discourage some sellers from betting against DOT.

When DOT breaks above its previous ATH, the 138.2 percent Fibonacci Extension ($64.7) can be immediately challenged. Following a correction period, the Fibonacci Extension levels of 161.8% ($74) and 200% ($89) can be tested.

polkadot

Conclusion

Due to bearish developments on the MACD and RSI, DOT may remain fixed within the channel $46.3 and $40 in the near term. Once the downward pressure subsides, look for DOT to move towards the 138.2 percent Fibonacci extension if the price breaks above $46.3 on strong volume.

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