What Polkadot Price Needs to Break Bearish Trend

23 November 2022, 09:00 GMT+0000
Updated by Geraint Price
23 November 2022, 09:00 GMT+0000
In Brief
  • Polkadot is facing resistance at $6.80.
  • The weekly RSI has generated bullish divergence.
  • DOT is trading inside a descending wedge.
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The Polkadot (DOT) price is trading in a bullish pattern. There is a confluence of resistances at $6.80. Whether the DOT price breaks out or gets rejected there will determine the future trend.

The Polkadot price has fallen underneath a descending resistance line since reaching an all-time high of $55.09 in Nov. 2021. The line has caused three rejections (red icons), the most recent on Nov. 7.

This caused a breakdown from the long-term $6.80 horizontal area, a decrease that was also seen in the rest of the crypto market. 

The $6.80 area is expected to act as resistance, while the closest support area is at $4. 

While the weekly RSI has generated bullish divergence the price movements do not give any bullish signs. As a result, a breakout from the line and reclaim of the $6.80 area is required for the trend to be considered bullish.

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Polkadot (DOT) Weekly Price
DOT/USDT Chart By TradingView

Polkadot Price Prediction: Breakout From Bullish Pattern

The price chart from the daily time frame shows that the DOT price has been trading inside a short-term descending wedge since the beginning of May.

The wedge is considered a bullish pattern. Therefore, a breakout from it would be the most likely scenario. The Polkadot price bounced at the support line on Nov. 22 and has increased over the past 24 hours. However, the daily RSI is still bearish since it is below 50 and has not generated bullish divergence.

The resistance line of the wedge is at $6.80, coinciding with the long-term resistance area. Therefore, whether the price breaks out or gets rejected will likely determine the future DOT price prediction.

Polkadot (DOT) Price Wedge
DOT/USDT Chart By TradingView

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Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.