$8.8 Breakout Gives Green Flag For 28% Jump

Published 10 mins ago

The Polkadot(DOT) buyers plan to end the past two months’ consolidation with today’s bullish breakout from the $8.8 resistance. Moreover, this breached resistance being the prior swing high indicates the buyers are preparing to extend the recovery rally higher. Can the potential rally surpass $10.6

Key points:

  • The DOT chart showcase five consecutive greens candles on the weekly chart
  • The rounding bottom pattern sets the coin price for a 28% rise
  • The 24-hour trading volume in the Polkadot coin is $628.5 Million, indicating a 88% gain.

DOT/USDT ChartSource-Tradingview

The DOT/USDT pair showcases a premature rally under the influence of a rounding bottom pattern. The altcoin is currently trading at the $9.21 mark, registering a $47.5 gain within a month.

However, since July 11th, the DOT price resonated within the consolidation phase of this pattern, stretching from $8.81 to $6.25. Today, the coin price witnessed a sudden surge in buying pressure, pushing the price above $8.81 with a 6.71% gain.

This bullish breakout backed by 20% in volume indicates that the buyers are confident that DOT will sustain the higher prices. A daily candlestick closing above the breached resistance will allow traders to test this level for suitable support.

If the coin sustains above the $8.81 mark, the flipped support may bolster the recovery rally 15% higher to reach the $10.6 mark.

However, as per the technical setup, the bullish reversal pattern will lead the DOT price to its neckline resistance of $11.8, indicating a more than 12% growth opportunity.

While things look bullish for DOT price, a failed attempt to hold above $8.81 may pull the price back to the $7.87 mark.

Technical Analysis

EMAs: A bullish crossover of 20-and-50-day EMA amid the $8.81 breakout gives a strong confirmation for buyers. Moreover, the last pullback bounced back from the 20-day EMA indicates it has flipped to viable support.

Vortex indicator: the expanding gap between the VI+ and VI- slopes accentuates the growing bullish reign. 

  • Resistance levels- $10.6 and $11.8
  • Support levels- $8.81 and $7.87

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

https://coingape.com/

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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