Riding along with the wave of the broader cryptocurrency market, Polkadot [DOT] gained steam to make a quick rebound. Several other defi tokens also staged a recovery, both big and small, as part of the overall rally in digital assets.
After two weeks of incessant bearish pressure, DOT tokens fell to levels that were last seen in February this year as investors exited their investments. It would be interesting to see if the technicals are in favor of the major comeback.
Over the past 24-hours, Polkadot was up by 5.50% which pushed its price to $23.57. The defi token held a market cap of $23.04 billion and a 24-hour trading volume of $3.27 billion, at the time of writing.
Polkadot [DOT] Daily Price Chart:
Polkadot appeared to be heading for a v-shaped recovery after hitting a nearly 4-month low price. The Volume has firmly supported the digital asset’s rise after the free fall as investors jumped in to rake in profits on the 19th of May. After this level cracked, investors bought another dip at a lower level three days later following which DOT jumped above.
The moving averages, however, suffered a bearish crossover and was above the DOT price candles which depicted a weakness in the bulls.
The dotted markers of Parabolic SAR aligned above the DOT price candles indicated bearish cues in the market. The red closing bars of Awesome Oscillator [AO] also depicted a weakening bearishness in the coin market. the RSI was also yet to recover from the bearish territory.
Hence, Polkadot’s recovery in progress could potentially halt and could result in the price turning down from $18.01-support, a break below which could sink it below $8.3 and $4.5 respectively.
On the other hand, a move above the resistance at $29.01 will invalidate this prediction. Regaining the range between $29-$38 could potentially flip bearish conditions and eventually push the price of Polkadot to another point of resistance at $45.7.