Bulls and Bears Wrestling for Control of Polkadot Price

Polkadot (DOT) price has generated a bullish divergence on multiple time frames. While such divergence often precedes an upward move, this has yet to happen.

Polkadot price has declined below a descending resistance line since its November 2021 all-time high of $55.09. So far, the price of DOT token has dropped to a low of $5 in November 2022.

Polkadot price has bounced back a bit since then, but it has yet to start a significant upward movement. Currently, it is trading inside the long-term $5.40 horizontal support area, which previously acted as resistance.

The most bullish development in price action is the bullish divergence on the weekly RSI (green line). Divergence is very important and occurs in long term time frames. If this is enough to reverse the bullish trend, DOT price could break out of the resistance line and accelerate its rate of increase.

Conversely, a weekly close below the $5.40 area could lead to an immediate decline towards the next support at $3.90.

Polkadot Price Weekly
DOT/USDT weekly chart. Source: TradingView

Bullish pattern aligns with Polkadot price rally

The daily chart shows that the price of Polkadot has been trading in a downtrend since May. Since the descending wedge is considered a bullish pattern, it will likely eventually lead to a breakout.

Since November 22, DOT price has traded close to the support line of the wedge, forming a triple bottom pattern (green icon) in the process. It is also considered as a bullish pattern. Furthermore, the daily RSI has formed a bullish divergence (green line). This aligns with readings from the weekly time-frame, which favors the start of an upward move.

Consequently, a movement towards the resistance line of the wedge is the most likely scenario. This will also take Polkadot price to the long-term resistance line. It seems that such a movement has started in the last 24 hours.

Conversely, a break from the wedge would invalidate this bullish DOT price projection.

dot price wedge
DOT/USDT Daily Chart. Source: TradingView

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The post Bulls and Bears Battle for Control of the Polkadot Price appeared first on BeInCrypto.

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