Polkadot performed well as DOT recovered on the charts over the past day. That came after a slight compression phase around the $18 mark. The latest uptick has the alt securing closing beyond the 20-50 Exponential Moving Average.
Bears continued to invalidate buying strength at the current price level. Any drop under the $18.8 level could put Polkadot on a clear road to test the range at $18.6 – $18.4 before a possible bullish comeback. While publishing this post, DOT traded near $18.78, following a 1.29% surge within the past day.
Polkadot 4Hr Timeframe
The past bearish phase from the early April peaks saw the alternative token losing over 28% as it tumbled towards the 1-month lows on April 12. However, Polkadot presented several sharp rallies since touching the base at $17, endeavoring to regain a crucial support floor.
The 200 Exponential Moving Average ignored all recovery trials as it offered a critical selling point. Furthermore, the 3-week trend-line resistance and the upward channel’s mid-line coincided, posing challenges to the ongoing revival rally.
A massive bounce off from this area and the price securing ground beneath the short-term upward channel may mean a near-term setback before DOT bulls target a re-entry around the 20-50 Exponential Moving Average area,
The bulls might ensure potential downswing obstructions as the EMA20 stayed beyond the EMA50. An eventual closing beyond the nearest trend-line resistance would be crucial in changing to motion in buyers’ favor.
Reasoning
The 4hr RSI secured some steadiness around the 50-56 level while displaying a brief buying edge. However, closing under the equilibrium will welcome an extended downward phase around the $18 mark.
Though the on-balance volume matched the surged growth over the past day, it showed a concealed bearish divergence with DOT prices. Therefore, a short-term retracement should not surprise enthusiasts.
Final Thought
The concealed bearish divergence by OBV and many resistance confluences may see Polkadot on a near-term drop to $18.6 – $18.4. Meanwhile, the improvements on the EMAs may see bulls propelling a rally to overcome the $18.8 value area.
Nevertheless, broader market sentiment evaluation remains crucial to complement technical factors for profitable undertakings.
