Polkadot (DOT) Price A bounce on December 29 is moving towards a confluence of resistance levels at $5.10. Daily RSI Readings support hopping.
Polkadot prices have fallen into a long-term descending wedge since June 13. This fall is due to Dec. The low led to $4.22 before a bounce on the 29th.
A descending wedge is considered a bullish pattern, meaning it leads to breakouts most of the time. Although the slope of the descending resistance line was not confirmed, the December 29 bounce verified it for the third time (green icon), making it a viable line.
DOT price hike has accelerated in the last 24 hours. If the upward movement continues, the nearest resistance will be $5.10, which is formed by the descending resistance line and the $5.10 horizontal resistance area.
On the other hand, a break from the wedge will lead to an acceleration of downward movement towards at least $3.60. Therefore, Polkadot price analysis depends on whether the price will break out of the pegs or lower.
Polkadot Price Prediction for January – Wedge Breakout Coming?
A closer look at the technical analysis from the daily timeframe provides two bullish signals, both related to the RSI.
First, Nov. (Black) The daily RSI broke from the short-term resistance line from the start. Such RSI breakouts are often preceded by similar movements in price.
Second, the daily RSI formed a positive divergence (green line) before the breakout. The indicator is now moving towards the 50 line, which will also provide resistance. If the rates of increase for both RSI and DOT price cease, the price will reach the $5.10 area at the same time as the RSI reaches the 50 line.
Therefore, whether Polkadot price explodes or declines later can determine the future trend direction.
In conclusion, the short-term Polkadot price forecast will increase towards the $5.10 region. The movement is still unclear once the price of the DOT coin is available. If the price gets there but fails to break out, it may consolidate into the wedge until the eventual breakout. Therefore, as long as the DOT price does not break out of the wedge, the potential for a positive reversal remains.
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