Polkadot’s DOT token is currently trading around $7.3, showing a healthy uptrend of about 6% over the last 30 days. The 200-day moving average sits around $5.3, which indicates the long-term trend and support level – the price bouncing off and holding above this level signals ongoing momentum.
The relative strength index (RSI), a technical indicator measuring recent price performance, reads 42 on the 6-month chart. An RSI below 50 typically indicates negative momentum, while a reading above 50 signals positive momentum. So while 42 shows DOT has slowed down somewhat in recent months, it remains well within neutral territory.
Notcoin airdrop on Telegram made millions to people. Don’t miss out on the next TG airdrop by the same team – Dogs on Ton!
Show more +Zooming out to the monthly DOT/USD chart, we can see the coin trying to reclaim the $6-7 region as support after it previously acted as resistance. As prominent crypto analyst Rekt Capital explains, this green zone blocked upside moves in early 2023 and prior to 2021. Now it must flip to support for bulls to regain control.
In his latest altcoin newsletter, Rekt Capital notes how DOT followed the projected path (blue line) very closely – rallying 32% to hit resistance (black line) before pulling back to retest support around $6.6, aligned with the key 2.618 Fibonacci level.
While this move already occurred, Rekt Capital suggests the repeat rally and breakout past resistance is still possible given DOT’s improving technical posture on the higher timeframe monthly chart.
Specifically, he notes the monthly chart shows potential for DOT to reclaim the $6-7 zone as support after it blocked further upside on two occasions before. If it can turn previous resistance into new support, this improves the outlook for DOT to repeat the 32% bounce off support and tackle resistance again.
But for now, the retest remains underway as buyers try to cement the $6-6.50 area as the new floor.
You may also be interested in:
- Why Is The Crypto Market Up Today?
- Analyst Says SEI Is Breaking Out, Shares Critical Make Or Break Levels
- The 4 Best Crypto Tokens To Invest In January 2024: Avalanche (AVAX), Meme Kombat (MK), Sponge V2 (SPONGE), and Bitcoin Minetrix (BTCMTX)
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
