- Polkadot has made a solid course up and missed some critical course targets.
- Today the DOT is falling a little lower, which is expected after yesterday’s rally.
- Buyers who have taken profits have a perfect entry point to add or back in for the next higher leg.
Polkadot (DOT) made a nice bullish move on August 31st, taking away some key profit levels. The first to break was $ 29.12 and was on June 3rd. That level also fell with the June pivot, making it a double cause of concern. On August 20 and 21, buyers tried to reach this level but failed. The price movement continued to subside after this attempt.
The Polkadot price has more wiggle room if buyers get in at the right time
The higher pop on August 31st took that $ 29.12 out slightly and even attempted to hit $ 31.76, which had risen on our chart on May 20th and 21st due to the double-top formation, be aware. Once again, the same type of pattern is emerging on the chart. Buyers tried to reclaim this but failed and the DOT price seems to be fading again. But that doesn’t have to be bad for buyers.
A cooldown after moving 27% in just one day would wear anyone down. Buyers have already secured part or all of the profit, so this type of correction and reduction in profits is normal.
DOT / USD daily chart
It will now be necessary for price action to stay above or recover based on three indicators on the chart. The first level that should turn resistance into support is at $ 29.12. If this level does not hold, then just below that is the green ascending trendline around $ 29. Lastly, if that’s not enough, there is still the 200-day Simple Moving Average (SMA) at $ 28 as support.
Sellers trying to sell DOT from $ 31.76 also need to keep the above levels in mind, which makes shorting at this level less interesting as there are many challenges along the way where the risk is greater to be stopped out when cashing in big time.
