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Polkadot's [DOT] upswing may be hurt despite renewed buy signal; here's why

Polkadot’s [DOT] upswing may be hurt despite renewed buy signal; here’s why

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Polkadot [DOT] finally broke out of the range-bound after fetching weekly gains of 38.87%. The crypto-asset surged above crucial hurdles at $26 and $29 after making a sustainable upswing to a level last seen on the 19th of May. It appeared to be slowly rising after establishing a local top as several top tokens went on a fresh rally after hitting a mild pause. The uptrend has aided DOT to breach Uniswap [UNI] and USDC to strengthen its position as the ninth-largest crypto-asset on the leaderboard.

Over the past 24-hours, Polkadot [DOT was up by 4.66% which catapulted its price to $34.18. At the time of writing, it registered a market cap of $34.13 billion and a 24-hour trading volume of $1.97 billion.

Polkadot [DOT] Daily Price Chart:

DOT1
Polkadot's [DOT] upswing may be hurt despite renewed buy signal; here's why 4

The moving averages have firmly supported the rising price. The 50 DMA [Pink] and 100 DMA [Blue] shifted below the DOT price candles in July and August. However, after the latest surge in the first week of September, the 200 DMA fell from its previous glory below the candlesticks depicting a promising turn of events. Additionally, after undergoing a bullish crossover with the 100 DMA, the above chart now hints at a so-called golden crossover with the 200 DMA [Yellow], a long-term bullish indicator.

Despite an increase in volume, DOT’s current levels are no longer near that of May, which could impede its growth in the near term.

DOT
Polkadot's [DOT] upswing may be hurt despite renewed buy signal; here's why 5

The green closing bars of Awesome Oscillator [AO] depicted a growing bullish momentum in the coin market. The MACD flashed green on its histogram. However, the daily Relative Strength Index [RSI] failed to comply with the ongoing trend after demonstrating a bearish divergence.

If the selling pressure retreats, the bears may try to invalidate the bullish narrative thus flipping the price to support levels. A downside move could potentially lead Polkadot to revisit support areas of $27.9, $22.08, and $20.2. In case of an upside break, on the other hand, the asset might target $39.6, and $47.8 respectively.