Polkadot Price Analysis: DOT Starts a Fresh Recovery Journey Targeting $24
- Polkadot price could soon break out of its dominant consolidation action.
- DOT’s technical picture sends massive bullish signals as buyers hold onto support at $16.
Polkadot price has for almost three weeks teetered in the confines of a narrow range. The upper range limit at $16.5 made sure that the bullish desire to lift the price above $20 was denied, while the lower limit kept bearish advances at bay.
At the time of writing, Polkadot teeters at $16.8 amid a renewed bullish outlook. The Relative Strength Index (RSI) appears to be validating the recovery after crossing above the midline. A movement to the overbought region will see more buyers joining the market, speculating the most awaited breakout to $24.
Polkadot recovery seems unstoppable to $24
It is worth mentioning that it is a significant milestone to close the day above $16. Holding onto this support will validate the uptrend eyeing highs above $20. The Parabolic SAR technical indicator has also flipped bullish, adding credence to the optimistic outlook.
Realize that the Parabolic SAR is a trading strategy that tracks the direction of Polkadot’s. It usually attempts to forecast trend continuations as well as potential trend reversals. When the parabolas (dots) flip below the price, it is a call for buyers to increase their entries. Hence, the possibility of Polkadot pushing the uptrend higher.
The further apart the parabolas are, the stronger the prevailing trend. Therefore, traders can watch out for these gaps to ascertain Polkadot’s impending upswing.
DOT/USD 12-hour chart
The Moving Average Convergence Divergence (MACD) adds weight to the ongoing recovery. This is a technical indicator designed to explore the relationship between exponential moving averages (EMAs) while sending out bearish and bullish signals. Mostly the 12-day and the 26-day are incorporated in the MACD.
It is worth noting that a buy signal appeared the 12-day EMA crossed above the 26-day EMA, compelling buyers to find entry more entry positions.
The MACD lines oscillate around a mean line (zero line), giving the impression of oversold or overbought market conditions. In other words, this indicator measures the momentum or the strength of a trend. As the MACD line crossed into the positive region, Polkadot’s uptrend was strengthened.
DOT/USD four-hour chart
What may invalidate Polkadot price uptrend?
The uptrend to $24 will be sabotaged if Polkadot fails to close the day above $16. On the downside, support at $13 could be tested before bulls regain balance and push for another recovery mission.