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- 1 DOT coin price is trading at the supply zone after bouncing off the demand zone.
- 2 The DOT coin price is forming a symmetrical triangle pattern on the daily time frame.
- 3 The pair of DOT/BTC is trading at the price level of $0.0002576 with an increase of 0.95% in the past 24 hours.
Polkadot (DOT) coin price, as per the price action, is forming a symmetrical triangle chart pattern. The coin price is forming lower-lows formation from the supply zone and higher-highs formation further from the demand zone. At present, the coin is trading in a narrow range and therefore breakout on either side will trigger big moves.
DOT Coin Price is Consolidating on the Smaller Time Frame
The coin price can reach the $8.11 long-term supply zone if it breaks out of the symmetrical triangle pattern. On a higher time frame, the coin price has fallen heavily and is making a lower low formation. To deny the continuation of the bearish trend on a bigger time frame, the coin price needs to break out of the symmetrical triangle pattern on the upside. The DOT coin price is trading in the middle of the Bollinger band indicator, after bouncing off the demand zone.
The DOT coin price is trading below all the important moving averages. The 50 and 100 MA can act as a strong supply zone in future as the coin price tries to move up. Although the coin price has given a breakout of 14 SMA, a breakout of symmetrical triangles is needed for a further up move. Volumes have been on a rise as the coin rivers around the supply zone.
The DOT Coin Price is Forming a Symmetrical Triangle Pattern on the Daily Time Frame
RSI curve is at 49.00 as the coin nears the supply area. At present, the RSI curve has crossed the 20 SMA. The coin is forming higher-lows and higher-highs formation on a 4-hour time frame as the coin shows bullishness in the higher time frame. The DOT coin price can be seen moving when it breaks out of the rounding bottom while the RSI curve moves higher.
MACD indicator has given a positive crossover as the coin gave a breakout of the supply zone. The blue line crossed the orange line on the upside. This has resulted in the coin price moving up strongly in a 4-hour time frame. Recently, DOT coin price fell after the breakout of small resistance. As a result, the MACD indicator also depicted the same. Once the coin price starts moving up again after retesting, the gap between the blue and orange lines can be seen widening – supporting the trend.
DOT coin price rose above the supply zone with a strong bullish candlestick pattern. The coin broke out of the super trend sell line which triggered the buy signal. As of now, DOT coin is trading above the super trend buy signal line. Going forward, this line could act as a strong support zone.
Conclusion: DOT coin price is trading in a strong bullish trend as seen on a 4-hour time frame. While on a daily time frame the coin price has been consolidating near the supply zone. The coin price is forming a symmetrical triangle pattern on a daily time frame. Investors should wait for a breakout of a symmetrical triangle and then act accordingly.
Support: $5.1 and $4.8
Resistance: $8.23 and $6.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
