Some of the altcoins were pretty much unfortunate after enduring an extended drawdown recently. However, Polkadot (DOT) seemed to be unfazed by it as the DOT pushed a strong rally that eventually peaked at $38 (sitting at $34.84 as of writing). Now that’s an impressive four-month high for the said digital currency.
Having the support of healthy on-chain metrics paired with development activity, the long-term outlook is leaning favorably toward the DOT. Nonetheless, in terms of the near term, some selling pressure is slowly manifesting into the market, alongside the focus changing gears heading to the lower trendline.
As above-mentioned, Polkadot’s price sits at $34 at the time of writing after gains dipped over the past 24 hours.
All the way up
Reports are also suggestive that DOT may well seem to be on the verge of jumping higher as buyers are trickling in, breaking some resistances to the upside. Further, Polkadot’s price is getting squeezed in and is all set for the breakout heading toward the next profit level higher at $45.22.
Moreover, since the bounce back from lows seen right after the seventh of this month, Polkadot’s price has swayed within an up-channel zone. It was also observed that new highs and fresh local top at $38.8 were fastened right after the digital currency flipped its 20 and 50 simple moving average (SMA) lines to bullish. From that moment on, the market lost quite a bit of steam as the DOT slipped going to the mid-line of its pattern.
It is said that a close to $36.1 would give way for a new low at $34, from where investors are expecting a bounceback to happen. Additionally, a reversal would have Polkadot pick up from the mid-line establishing a fresh top hovering over the $40 mark.
Polkadot price action
The relative strength index grasped firmly within the bullish area, though it was pointed out that as of press time, was moving towards the lows after reaching the overbought area. This is an indication that stabilization was in effect, though it was pointed out that such could spiral in a breakdown provided that the RSI goes below equilibrium and eventually goes bearish.
Polkadot has buyers etched around its price action in the elements that the green ascending trend line is again a force to reckon with, according to reports. On Tuesday, if the recent data is anything to go by, the low of the session bounced exactly off the green ascending line. In line with this, the week prior, the same ascending trend line was put to the test three times, though failed every time to break to the upside. As price action in Polkadot is elevated, buyers will have no other option than to pressure price action above $37.