DOT, the token from Polkadot, is currently trying to form a recovery after being rejected from the Higher Low Daily which makes it an optimistic view of investors, although in my opinion, it will still need further validation to avoid False Signals.
Now, based on data from Coin Market Cap (CMC), at the time of writing, DOT has a market capitalization of $31,510,343,249 and a daily trading volume of $1,966,821,527 which makes this crypto ranked 8th in market capitalization.
And if we compare it to 2020, the market capitalization has increased very rapidly along with the increasing use of technology from Polkadot, the company behind the crypto DOT, which is certainly an adoption that will increase the prospects of the crypto.
4 Hour Chart Technical
At the time of writing, the DOT has been back into recovery mode, much like some of the major cryptocurrencies, which have previously been battered by strong seller action as investors’ stance on US President Joe Biden’s tax policies.
In our technical view, the bulls are entering an important phase of trend validation, where important post-recovery levels await to give us clear trend signals from the technical side.
Here I try to describe it in the 4-hour technical chart below:
Based on the image above, the price in recent days has been trying to rise from the Higher Low Daily, which is represented by the Key Support levels at $ 28.3 and $ 30.5, so technically these levels will be very important in reading the fate of the DOT, whether it will be able to build a rally , or even move lower again.
In my view, at this time frame, the DOT price will still face Key Resistance levels on its bullish run at $36.15 and $39.30, the Area in between being the Multi-Day Resistance Area.
In this analysis, I see that this Resistance Area will be a good trend validation point if the price is able to move up again to retest it, where this is an important High point on the Daily which will be able to better clarify the Bullish potential if it is able to breakout strongly.
Daily Chart Technical:
And also, in the medium-term view, we simplify the Polkadot token by only having one Main SR level each, which will underlie the potential mid-term trend, which we should underline and observe carefully.
In view of this analysis, the bulls still have a chance as long as the price is able to maintain its position above, or around the $30.50 Main Support level which is the Higher Low Daily point, so ATH will be the next destination if the Main Resistance is able to be exceeded strongly and validly.
And for the Bearish scheme, the price failed to build Bullish momentum while still below the $39.30 Main Resistance level which resulted in a price fall and breakdown of the Key Support, where if this happened, a bloody decline was ready to hit the DOT, which would likely settle below the $24 level.
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Author: Syofri Ardiyanto
Crypto Enthusiast and Investor