A potential bullish reversal from the $6 mark will validate it as a high accumulation zone. To enforce the reversal theory, the coin chart showed the formation of a double-bottom pattern. Under the influence of this pattern, this polka dot coin price should breach the immediate resistance of $6.52, offering a higher footing level to encourage bullish growth.
Key points from Polkadot coin analysis:
- The DOT price shows a strong demand force below the $6 mark
- The double bottom pattern sets an 11% growth in market value
- The 24-hour trading volume in the Polkadot coin is $376.5 Million, indicating a 98% gain.
Source-Tradingview
Amid the recent sell-off in the crypto market, the Polkadot coin price plunged back to the July low support of $6.1-$6. Furthermore, the coin price spent nearly a week sustaining above this level, creating a narrow range between $6.52 and $6.
However, the technical chart displayed this consolidation as a double-bottom pattern. The famous bullish reversal pattern is often spotted at the market bottom, offering a recovery opportunity to coin holders.
Today, the Polkadot coin price is 4.52% up and shows a morning star candle at the $6 psychological support. With a sufficient boost in volume action, the coin price hits the pattern’s neckline resistance of $5.6.
A bullish breakout from this resistance will trigger the reversal pattern and drive the prices 11.5% higher to hit the $7.3 resistance. Anyhow, the coin price should reclaim the $8 psychological resistance to obtain a better possibility for price recovery.
On a contrary note, if the Polkadot coin price remains below the $6.52 resistance, the ongoing consolidation will last for a few more trading sessions.
Technical Analysis
Relative strength index: the daily-RSI slope shows a bullish divergence despite a price consolidation, indicating a gradual rise in underlying bullishness. This divergence also offers a better possibility for price recovery.
DMAs: the coin price trading below the crucial DMAs(20, 50, 100, and 200) indicates a bullish recovery will face multiple resistance ahead. Moreover, the 50 and 200 DMAs on the verge of bearish crossover could encourage more selling activity in the market
- Resistance levels- $10.6 and $11.8
- Support levels- $8.81 and $7.87
