• DOT is still on a rampage higher, helped by a rediscovered interest in cryptocurrencies. 
  • DOT needs to break $27, which is a double resistance level. 
  • Further upside is possible as long as favorable tailwinds remain present.

Polkadot (DOT) has had an excellent run higher. A well-respected green ascending trend line has been formed and still shows importance and strength in the coming days. To the upside, however, price action is limited for now, with the 200-day Simple Moving Average (SMA) at $27 and the high of June 4 blocking the path. The risk of a double top formation could spell some short-term issues for price action. DOT could face a minor correction to the downside with a test of the green trend line as supportive action.

DOT is in a triangle formation, and a push to the upside looks inevitable

Do not expect the push to come just yet. A break higher out of the triangle looks instead set for the end of August. Buyers will need to step in each time and defend the ascending green trend line. This way, short-sellers will get squeezed out of their short positions with stops tucked away just above $27. Expect those stops to be run once the price breaks above and buyers to look for $29 as the next profit-taking level.


DOT/USD daily chart
DOT/USD daily chart

Polkadot is, therefore, set to run higher. The ultimate level to watch beyond $29 will be $31.76. Key will be that the green ascending trend line stays confirmed. If that should give way, expect a big squeeze against buyers, with prices dropping to $16.95. DOT has the orange horizontal support that originated on May 24. It is a significant level of interest since  around August 4, price action first  broke above, came back to test and rebounded off that level to jump higher. This is the best possible technical setup for a long. Should DOT correct, expect this level to be defended by buyers who have their stops just below $16.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction

SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction

The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.

More TRON News

XRP fails to break past $0.50, posting 20% weekly losses

XRP fails to break past $0.50, posting 20% weekly losses

XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22. 

More Ripple News

ImmutableX extends recovery despite $69 million IMX token unlock

ImmutableX extends recovery despite $69 million IMX token unlock

ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

More Bitcoin News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP