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Bearish Divergence on the Weekly Chart Could Slow Down Upside Momentum on the Intraday Level

Polkadot


Polkadot’s Parachain auction is set to launch on 11 November ’21 with speculations around which five projects will win the available slots.

The Moonbeam project an EVM compatible blockchain is the first project believed to get the first slot launch on the Polkadot ecosystem.

Acala project is the next project that analysts believe is almost guaranteed a slot on the Parachain, as the project is expected to provide financial applications such as a multi-collateralized stablecoin [aUSD], a trustless staking derivative [liquid dot], and an AMM DEX.

The last two notable projects also worthy of slots are the Bit. Country and Phala Network projects.

Read on as we dive dip into the price charts of the DOTBTC and DOTUSDT.

Polkadot vs Bitcoin BTC – DOTBTC Weekly Chart Analysis

chart by Tradingview

The DOT vs. BTC was faced with a second bearish divergence pattern after recovering from an earlier 64% price slump from high demand for BTC.

 Bear-trap candlestick formation seems to mark an end to the current price correction and we may see the DOTBTC shoot above the bearish divergence trend line and resistance level on 13 September ’21.

Polkadot DOT Weekly Chart Analysis

Dot

The ADAUSDT flags a regular bearish divergence pattern after setting a new ATH at $44.78. We should expect the DOT price to dip towards the $25.50 support and a continuation of the uptrend if the price stays above the 20 September support.

Further breakdown of the $25.50 support should see the price collapse to the lower $10.37 support.

Polkadot DOT Daily Chart Analysis

Dot

The daily time frame of the DOTUSDT shows the pair entering back into an uptrend on 07 October and continues to trade above the level-25 at press time.

The current DOT price continues to trade within the bearish and bullish divergence trend lines established on 14 and 21 September ’21 [$38.77 and $25.50]. 

Meanwhile, a second hidden bullish divergence is building up at press time and we can expect a price surge above the $44.78 resistance.

Polkadot DOT 4HR Chart Analysis

Dot

The RSI dipped below level-25 on the 4HR time frame signaling a wide range hidden bullish divergence when we compare the RSI level-21 to level 23 [12 October 08:00].

This bullish divergence should be sufficient for us to see a bullish trend continuation. However, a breakdown of the $39.52 support could send the DOT price tumbling down to the $32.25 support.

Polkadot DOT Intraday Levels

  • Spot rate: 41.35
  • Mid–Term Trend [H4]: Bullish
  • Volatility: Medium
  • Support: $32.25 and $39.52
  • Resistance: $44.78

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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