The post Polkadot: Can DOT hold above $5? Key levels to watch now! appeared on BitcoinEthereumNews.com.

DOT/USDT pair breaks and rejects off $5 resistance. Rising open interest and volume increase, signals bullish sentiment. Polkadot [DOT] broke above the $5.0 price level but faced immediate rejection. This price action on the 4-hour time frame highlights DOT’s struggle at this critical resistance point. The $2.5 – $4 range is a psychological level serving as both daily and weekly resistance. DOT/USDT pair is currently ascending within a parallel channel. Source: TradingView As of press time, DOT had gained 10.54% this week. The overall market bias for altcoins remains bullish, despite the rejection with a bearish engulfing candle, signaling a possible reversal. Falling wedge pattern Additionally, DOT is consolidating within a falling wedge pattern 0n the daily timeframe, a structure often indicative of a potential bullish reversal. The price action of DOT/USDT pair appears to have bottomed out and may be preparing for a bullish breakout. source: TradingView The next key level to watch is the upper trendline of this falling wedge, with a successful retest likely before price rallies further, especially with altseason anticipated in Q4 of 2024. Weekly support and stochastic RSI Polkadot’s [DOT] weekly support has been holding strong, marking the lowest point for DOT. This support level has rejected price drops five times, and after a higher high was made, the price retracted back to this support. The stochastic RSI for DOT/USDT is currently oversold, suggesting that the gains seen this week could be the beginning of a larger trend. Source: TradingView This anticipated upward movement could be influenced by the expected rate cuts, which would benefit altcoins like DOT. Open interest As of press time, Polkadot’s [DOT] open interest is showing a positive OI-weighted funding rate of 0.0046%. This indicates bullish sentiment on DOT, as traders with long positions are paying 0.0046% to those with short…

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Filed under: News - @ August 26, 2024 9:24 am