- Polkadot trading remains directionless after rejection from highs marginally above $38.
- A sell signal on the 12-hour chart reveals that DOT could soon retrace.
- The SuperTrend indicator and the MACD are in favour of a bullish outlook.
Polkadot bulls are working hard to gain balance after suffering a minor rejection slightly above $38. The prevailing trend is not exclusively bearish due to the support presented by a key technical pattern. If the immediate anchor holds, a recovery will resume right away, but if losses extend, DOT could drop to $36 before buyers stage another recovery mission.
Polkadot Remains Directionless
The Relative Strength Index (RSI) on the four-hour has stalled marginally before hitting the overbought region. The levelling motion at 65 suggests that a consolidation period would take precedence.
Polkadot is also holding at the ascending channel’s middle boundary support. This pattern shows that the general trend is upwards. It also identifies potential support and resistance levels. If the immediate support caves, DOT would dive toward the lower edge, whereby a bounce is expected to come into action.
DOT/USD Four-Hour Chart
The Bearish Outlook
The TD Sequential indicator has flashed a sell signal on the 12-hour chart. This shows that it would be an uphill battle for Polkadot to rise to levels past $40. The call to sell has been presented in a red nine candlestick; however, it is waiting for confirmation. Note that, as the sellers gain momentum, DOT will explore the levels toward $36.
DOT/USD 12-Hour Chart
Looking at the Other Side of the Fence
The 12-hour SuperTrend Index suggests that Polkadot is still in an uptrend. The indicator has signalled to investors to long DOT. Taking a long position means that a trader is willing to bet on a long-term uptrend in the price.
The Moving Average Convergence Divergence (MACD) indicator confirms the bullish outlook with a spike above the mean line. The divergence the MACD line has made above the signal line also reinforced the bulls’ presence in the market.