By Franklin Smith
Polkadot has seen persistent downtrends like most digital assets within the past months. This phase had the 2-month trend-line resistance checking the latest bullish resurgence attempts. The current price structure reveals an interesting stance. Rebounding from the long-term foothold might position DOT for short-term upticks.
Nevertheless, the overall market structure remains in sellers’ favor. That can see DOT losing the $7 support before extending its declines within the upcoming sessions. While publishing this blog, Polkadot traded near $7.25, 8.59% up within the past 24 hours.
Polkadot Daily Timeframe
The latest slump dragged Polkadot to 17-month lows on 13 June, following a more than 32% 3-day fall (10 June – 13 June). Buying momentum seemingly witnessed an uptick after this drop. Therefore, the alternative token formed a bullish hammer on its 24hr chart after several red candlesticks.
Polkadot’s symmetrical triangle breach cleared the road to hit the 8-month trend-line support. Meanwhile, the current candle closing beyond the hammer would authorize the near-term buying strength.
Traders should watch for any closing above $7.5 to gauge the buying pressure’s effectiveness. Considering the bullish hammer, $7.03 support, and the trend-line foothold, DOT might witness a near-term recovery to explore $8.6.
Failure to close above $7.3 might amplify the sluggish movements in the upcoming sessions. A downward move beneath $7 would open the path for another 8-10% decline.
Reasoning
The Relative Strength Index dipped inside the oversold territory following consistent attempts to overcome the 44-bonds. Possible growth from this mark might aid Polkadot’s near-term recovery projections.
Nevertheless, the Moving Average Convergence Divergence still depicted a massive bearish preference within ongoing market dynamics. Moreover, the –DI appearing south might see DOT registering selling momentum ease in the short-term.
Final Thought
Several support confluences near $7 plus the bullish hammer confirms a possible short-term revival that might push DOT towards $8.6. Such scenarios would mean buyers waiting for a closing beyond $7.3. Nevertheless, a broad market outlook remains crucial to complement Polkadot’s technical factors for profitable moves. A decisive plunge beneath $7 support might trigger undesired plummets.
Stay tuned for upcoming crypto updates.