- Polkadot price faced resistance before testing the previous top
- Cause for the halt in the rally, low volumes of Polkadot
After giving a breakout from the triangle, Polkadot price turned into the bull mode, but this time due to low participation, the rally halted in today’s session and reversed. The low volume indicates a possible retreat for the price, while the price range volume analysis shows a higher selling volume over the buying volume. The market cap and 24-hour volume are $32,937,343,744 and $2,762,302,750 respectively.
Dot Price To Retreat, Indicates Indicators
Left Image: The coin has made a tweezer top on the charts and indicates a possible turn-around. The price level shows support along with $35 and $30, as well as resistance along with $40.
Right Image: The DOT price is creating a gap with 10-EMA($34.31), 20-EMA($320.58) and 50-EMA($25.8), which is bringing weakness in the coin possibly. Also, the 10-EMA showed another sign of weakness by curving down, raising a possible bearish crossover scenario.
Bollinger Bands seem to be the actual reason behind this pull-back, as the upper band restricted the price in today’s and yesterday’s session. Along with that, the price has made a double top at the upper band on February 20, 2021, and March 4, 2021. The upper band is hovering at $38(resistance), while the median and lower bands are at $34.33(support) and $30(Support)
RSI is headed down towards its support at 50 levels. The current levels of RSI are 65. Another reason behind the weakness is possibly the RSI on weekly charts, which is still in overbought territory, i.e. above 80.
MACD(8,21,5) gave a bearish crossover in the positive territory and possibly will make the coin tumble until it reaches 0 levels.
DOT price has shown weakness in the trend by making a lower top and tweezer top accompanied by low volumes. The 10-EMA is also headed down towards the 20-EMA. The consolidated Bollinger Bands indicate the distribution phase, possibly correcting the coin till 20-EMA.
Support: $34.33(10-EMA), $32.6(20-EMA) and $30(Pivot – P)
Resistance: $38(Upper BB) and $40-$41(Pivot – R1)