Descending resistance line
Polkadot price has been falling below the descending resistance line since hitting an all-time high of $55.09 in November 2021. The line has rejected the price three times (red icon), most recent is on November 7.
This caused a break below the $6.80 long-term zone, a drop also seen in the rest of the crypto market.
The $6.80 zone is expected to act as resistance, while the nearest support is at $4.
Although the weekly RSI has created a bullish divergence, the price movement is not giving any bullish signs. Therefore, a breakout above the line and reclaiming the $6.80 zone is required for bullish trend.
Polkadot Price Prediction: Bullish Breakout
The price chart from the daily timeframe shows that DOT price has been trading inside a short-term descending wedge since the beginning of May.
The wedge is considered a bullish pattern. Therefore, a breakout above it would be the most likely scenario. Polkadot price bounced off the support line on Nov. 22 and moved higher over the past 24 hours. However, the daily RSI is still falling as it is below 50 and is not creating any bullish divergence.
The resistance line of the wedge is located at $6.80, which coincides with the long-term resistance area. Therefore, a breakout or rejection will likely determine the future trend.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision.
Follow our channels for more crypto news:
- Cryptory Insights: https://t.me/CryptoryInsights
- Cryptory Global Community: https://t.me/CryptoryCommunity
- Facebook: https://www.facebook.com/CryptoryNetwork
- Twitter: https://twitter.com/CryptoryNetwork