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Wednesday, May 25, 2022

๐ŸŽ“ What does the weekend hold for DOT cryptocurrency?

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Polkadot (DOT) cryptocurrency rallied above $17.5 and turned that level into support before moving towards $19, but the short-term outlook seems to lack buying pressure.

Moles

Last week Polkadot traded in a range of $16.17 to $17.57 and the middle of that range was at $16.87 and had a few encounters with a long-term support level at $16.81.

Over the past few days, DOT has found some support at the confluence of support levels.

In the first attempt to break beyond the top of the range, DOT was unable to hold the higher levels once $17.6 flipped its support.

Just as Bitcoin saw its drop to $38.8K from $42,000, DOT was also forced down.

On its second try, the price was able to set a higher ceiling and also found a demand of $17.6, which means that the short-term market structure was bullish.

The $19 area has formed significant resistance for the coin and thus a buying opportunity may appear in the near term if this level turns into support.

The coin will also need to hold $17.6 as a support level to move higher.

Moles

The Relative Strength Index (RSI) is at 62.16 and has shown strong bullish momentum in the last few hours, however, it has also shown a bearish divergence between price and momentum, and the awesome oscillator also appears to be forming a higher top low even when the price is rising

Conclution

The indicators showed that Polkadot could see a drop to the $17.6 area in the coming hours, and the $19 level has formed a strong resistance and can be used as a profit-taking level.

A return below $17.6 in the next two days is likely to reconsider $16.8 and $16.2.

A move above $19 and a retest of support would also provide a short-term buying opportunity.

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