Polkadot Price Analysis: DOT Spikes 8%, Heading Towards Crucial Resistance – CryptoPotato

Following an 8% daily increase, DOT attempts to retest the key resistance at $32 on renewed momentum.
Key Support level: $25
Key Resistance level: $32
Polkadot’s DOT native token completed a short-term correction and is now creating a support floor and trading range between the support level at $25 and resistance at $32.
The first attempt to break out above this trading area was rejected last Monday. However, DOT appears ready for a second tryout.
Trading Volume: A reasonable amount of volume on the last attempt on Monday to break above $32. The current volume is a bit low (maybe due to the weekend), but it favors the buyers right now. Watch out for the volume on Monday.
RSI: The RSI is making higher lows, which is a bullish sign, and is currently hovering just above 50 points – the neutral level.
MACD: The daily MACD is bullish and is heading up, despite the rejection at key resistance last Tuesday. This is a promising sign for bulls.
The bias on DOT is somewhat bullish, but a break of the critical resistance is needed to confirm this.
DOT managed to stop the downtrend and consolidate under the key resistance at $32. Now, buyers appear eager to take DOT back up again as they prepare the stage to break the key resistance. Should they fail, DOT will face the ‘floor’ level at $25. Watch out for possible volatility to return next week following the new year holiday.
Duo Nine is a seasoned cryptocurrency technical analyst with over five years of experience in price action trading. After buying his first Bitcoin in 2014, Duo never left the blockchain ecosystem. You will find him posting charts most of the time and hanging out on his Discord crypto community. Contact: Twitter

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