Will this weekend of lower liquidity see Polkadot push it past $19
Warning: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
Polkadot broke above $17.5 on the charts and tipped it towards support before heading towards $19 – but buying pressure appeared to be lacking in the short-term outlook. Bitcoin was trading just above the $39,000 mark, and the near-term direction of the king of crypto on the charts was also unclear. Weekends are also periods of low liquidity. Will Polkadot’s rally push it past $19 or was selling pressure likely to be dominant?
Last week, Polkadot had been trading in the range of $16.17 to $17.57. This midpoint of this range was at $16.87 and had some confluence with a longer-term support level at $16.81. Over the past few days, the DOT has found some support at this confluence of support levels.
In the first attempt to break beyond the range highs, DOT was unable to hold the range highs once $17.6 tipped towards support. Bitcoin saw a pullback to $38.8,000 from $42,000 and DOT was also forced lower.
On its second attempt, the price was able to establish a higher (short-term) high and also find demand at $17.6, which meant that the short-term market structure was bullish.
To the north, the $19 zone provided significant resistance to the efforts of the bulls. Therefore, a short-term buying opportunity could present itself if this level were tilted towards support. To the south, the $17.6 should remain unbroken for DOT to climb higher. A session that closed below $17.6 could see DOT fall back towards $16.2.
The RSI stood at 62.16 and showed strong bullish momentum in recent hours. However, it also showed a bearish divergence between price and momentum. The Awesome Oscillator also appeared to form a lower peak even as the price rose.
Meanwhile, the OBV showed that the buying volume was not particularly high after the retest of $17.6.
Indicators showed that the next few hours could see a pullback towards the $17.6 region for Polkadot. $19 posed a strong resistance and can be used as a take profit level. A return below $17.6 in the coming days would likely see $16.8 and $16.2 revisited. A move above $19 and a retest as support would also present a short-term buying opportunity.