Thursday, May 23, 2024

Polkadot Oversold After Rejection from Supply Zone, DOT could now be ripe for buying.

Since the beginning of the year, Polkadot (DOT) price has been in a covert downtrend, recording lower highs and lower lows, with the upward potential constrained by a declinating trendline. It happens as altcoins continue to dominate the cryptocurrency market, but since DOT appears to be preparing for a rally comeback, things may soon change.

Polkadot price at an inflection point
The price of Polkadot (DOT) was strongly rejected by the three-day supply zone, which was located between $4.335 and $4.631. Due to the downturn, DOT found support at $3.756 and is currently at a crossroads, torn between continuing south and pulling back to the anticipated $5.000 objective.

The Relative Strength Index (RSI) has crossed below the 30 level, indicating that DOT is still oversold, but the probabilities still favor the downside. An asset may be oversold and therefore be due for a rebound if the RSI is below 30, according to conventional wisdom. This may signal the start of a pullback or correction.

On the other hand, if passive investors recognize that DOT might be a good investment opportunity and act on the positive signal, the Polkadot price might move further to the north, breaking through the $4.227 resistance level and extending into the supply zone at $4.335.

The bearish argument might be refuted by a strong 3-day candlestick closure above this order block’s $4.500 midline. The supply zone would then be transformed into a bullish breaker, opening the way for a continuation to the psychological high of $5,000. This action would represent a 30% increase over existing levels.

The slide might deepen and push Polkadot pricing below immediate support at $3.756 if bullish momentum does not develop. A strong break and close below this level might remove the obstruction, potentially sending DOT to the psychological threshold of $3,000 in the process.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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