Bitcoin’s recent upward momentum resulted in most of the market gains. Polkadot was no exception. It has worked very well indeed. Polkadot gained an impressive 28% in four days to hit the key level of $ 29.8. At the time of writing, it was pulling back to $ 28.27.
DOT – 1 hour chart
DOT has formed a descending wedge pattern (white) in the past two weeks and erupted a few days ago. It climbed steadily and quickly to the $ 29.81 level. Nearby, there was also higher resistance in the timeframe at $ 29.86.
When we use the Fibonacci retracement tool to move the DOT up from $ 23.27 to $ 29.81, we find that the price has already seen a decline to $ 28.27, which is the 23 retracement level , Corresponds to 6%.
The $ 28-28.4 area has also been an area of liquidity for the past few weeks, and it was an encouraging sign of the bulls’ strength that they could buy the retreat into that area.
Although not shown in the graph, the 27.2% and 61.8% extension levels for the breakout of DOT are at $ 31.59 and $ 33.85, respectively. In general, these expansion stages are areas in which the move comes to a standstill, at least temporarily.
The A / D line has been rising for the past few days, making higher lows. This showed that the volume of purchases outweighed the volume of sales in the past few days.
The Awesome Oscillator fell below zero from $ 29.8 to $ 28.2 during the pullback. We can’t read too much into here and since this is the 1 hour timeframe. The 21-period SMA (orange) remained above the 55-SMA (green) on the price chart.
Another thing to watch out for on the price charts was the pullback, which occurred as volume decreased. This meant that the pullback would likely just be a pullback and be followed by another move up. There were concerns that trading volume had not increased after retesting $ 27.8. This was an indication that a deeper pullback was still visible.
The 23.6% level appeared to have stopped the pullback, but a revisit to $ 27-27.3 cannot be ruled out. However, based on the evidence available, it seemed more likely that the bulls would continue to advance towards the $ 31.59 and $ 33.85 levels. $ 30 would likely be a round resistance on the way and a candle close above that level would continue to encourage buyers.