After soaring to a 30-day high on July 3, Polkadot (DOT) retraced and has been unable to overcome the $5.28 barrier. Furthermore, the release of the U.S. Client Value Inflation (CPI) data did nothing to change the DOT trend.
This was due to the fact that the overall cryptocurrency market response, driven by Bitcoin (BTC), was essentially nonexistent. DOT still decreased to a $5.13 intraday low.
Increased Value Power
On July 6, DOT first encountered the $5.28 barrier in response to the four-hour chart. However, on July 10, at $5.02, the market construction turned positive following a subsequent period of consolidation. This amount of demand resulted in the Relative Power Index (RSI) reaching a high of $62.07.
However, due to increased promotional pressure, DOT was unable to surpass this apex. As a result, the token value decreased because the RSI also decreased to 44.30.
At the time of writing, the RSI had risen once more to 51.09. This verified the return of bulls to the market. However, DOT might need to go beyond the $5.20 cap in order to approach another high. The growing value energy must also improve past the 51.09 region.
However, it could be a little difficult to close in on a different peak. This was due to the Transferring Common Convergence Divergence (MACD) scenario. The MACD had crossed the 0.00 centerline as of the time of writing.
To Cross the Centerline, DOT
This implies that there wasn’t much of a difference between the 12- and 26-period EMAs. The MACD, however, increased from below 0 and just over the histogram. This can be a primary purchase sign.
If demand develops, a shift to the upside might weaken bearish as DOT climbs above $5.17. The Superior Oscillator (AO) showed a series of purple bars that decreased steadily. This may mean that bearish management was deteriorating.
The fast-moving common (5-period) is typically larger than the slow-moving common (34-period) according to a constructive AO. Instead, a negative study suggests that the slow-moving average is larger than the fast-moving average.
Thus, similar to the MACD, the AO might require more buying pressure for the 5-period transferring average (MA) to surpass the 34-period MA. When this happens, DOT may reform a bullish structure while removing sellers from the path.
DOT may now continue to linger comfortably. However, if the symptoms line up and break the $5.28 resistance, then DOT’s next objective might exceed $5.50.
