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Polkadot price sees bulls surviving profit-taking, still on track for new all-time high

  • Polkadot price faded before it could make new all-time highs on Tuesday.
  • DOT price tumbled back below $45.22, but bulls are reemerging on the scene. 
  • With the rally back underway, expect DOT price to hit new all-time highs soon.

Polkadot (DOT) price has made a nice uptrend throughout October with an attempt to reach the all-time high at $50.76. But bulls got stopped in their tracks and hit a curb at the monthly R2 resistance level around $47.50. The Relative Strength Index (RSI) is already showing an uptick in buy-volume, and bulls are restarting the rally towards new all-time highs.

Polkadot price set, yet again, for new all-time highs

On Tuesday, Polkadot price hit a curb in a failed attempt to break above the monthly R2 resistance level at $47.50. That monthly R2 was the only resistance that was in the way for DOT bulls to push Polkadot price towards new all-time highs. Instead, DOT price failed to break through and dipped back below $45.22, which was a historical pivot level.

With the RSI showing an uptick towards more buy-activity, it looks like buyers are stepping back and are trying to reclaim $45.22. With renewed volume on the buy-side, expect a break of the R2 resistance level, which will trigger more buyers to jump into the price action. Once beyond R2, it is just a $3-move before making new all-time highs.

DOT/USD daily chart

DOT/USD daily chart

As the restart of the bull rally will demand quite some strength and effort, expect DOT price to be rejected again at the R2. At that level expect bulls to flee the scene as  bears are likely to put up a determined defence, and DOT price will probably start to break below the green ascending trend line again. Expect a nosedive reaction after that break towards $37.03 and $31.61 in the short-term, should the correction accelerate.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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