Polkadot (DOT)- Long term analysisPosted on Monday, October 18 2021 at 8:38 pm GMT+0000
Technical picture is still shiny
Polkadot (DOT) is maintaining its clear bullish trend standing right below the 49.75 all-time high. It has been painting a strong bullish structure since early August, and currently trading well above the exponential moving averages.
Momentum indicators however have started to show some weakness in positive impetus. The RSI shifted south after hitting the overbought border, and the stochastic %K line crossed beneath its %D line. Both suggesting a minor near-term bearish correction.
In this scenario, immediate friction could commence from the nearby top of 38.74. Diving further, the price may seek assistance of the 50-day exponential moving average and the bordering 50% Fibonacci retracement level of the 38.04-25.50 descent at 32.12 ahead of the aforementioned wave low, a break of which would erode investors’ confidence in the current structure.
To the upside, a strong push above the latest high of 44.70 and more importantly above the 161.80% Fibonacci level of 46.92, would likely see a retest of the 49.75 peak. Beyond that, attention would turn initially towards the 60.00 zone.
In brief, a downside correction is more likely now, though the technical picture is still shiny.