The Polkadot (DOT) price reached an all-time high price on Jan. 16, this should continue increasing towards it's closest respective resistance area.
All-Time High Price
DOT has been increasing rapidly since breaking out from a descending resistance line on Dec. 28, 2020. DOT continued to rally and reached an all-time high price of $19.40 on Jan. 16.
The rate of increase has turned parabolic, and technical indicators have begun to show weakness. While the MACD is still increasing, the RSI has formed bearish divergence, and the Stochastic Oscillator is close to making a bearish cross.
DOT’s Short-Term Movement
The shorter-term two-hour chart shows that DOT is following a descending resistance line. It continued to track this line after reaching the previous all-time high price on Jan. 16.
Currently, DOT is in the process of breaking out after bouncing on the $15 support area this morning. Technical indicators are bullish and support the potential for a breakout.
If it does, the most likely target for the next resistance area is at $26, the 3.61 Fib extension of wave 1 (shown in white below). The next target would be at $32, the 4.61 Fib extension of the same wave.
Conclusion
To conclude, DOT should continue increasing towards their closest resistance areas at $26.
Where do you think the price is going?
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Until next time, stay classy crypto world!
