Polkadot (DOT) – On the verge of an outlook upgradePosted on Monday, October 31 2022 at 9:07 pm GMT+0000
Polkadot (DOT) bounced aggressively after charting a fresh multi-year low a couple of weeks ago, and managed to erase all October losses. The bulls are currently challenging the 27th of September top near 6.81 in an attempt to oppose the summer decline.
Technical indicators suggest an increase in the potency of positive forces as the 20-day exponential moving average is getting ready to cross beyond the 40-day exponential moving average. Additionally, the MACD is edging higher above its signal line and just entered the positive section while the RSI is hovering well above its equilibrium level of 50.
However, for that positive scenario to materialize, bulls should secure a decisive close above 6.81. By successfully doing so, they will eye the Fibonacci golden number of the last down-leg at 7.53. Stretching past this, they will then try to conquer the key 12th of September top at 8.05 to sail towards the 261.8% Fibonacci level at 8.69.
On the other hand, if the aforementioned resistance bar proves solid enough for a downside reversal, the price will slide below the 20- and 40-day exponential moving averages to seek support near the 5.65 base will. Any violation here will bring the broad downtrend back into play and shift the spotlight immediately toward the 5.00 round number.
To summarize, despite the latest positive thrust, Polkadot has yet to confirm a bullish reversal. Only a significant close beyond 6.81 will confirm an outlook upgrade in the medium-term picture.