Polkadot (DOT) is at the brink of a critical resistance after bouncing off its exponential moving averages (EMAs). The market remains indecisive as traders await either a breakout or a retracement.
Market Structure and Resistance Zone
The price of DOT is on an upward trajectory, reaching a strong resistance zone. A previous local top lies above this level, making it a crucial point for determining future price action. If DOT fails to breach the resistance zone, a bearish retracement could follow, potentially sending prices toward a support area near $3.541.
Technical Indicators and Key Levels
Several indicators provide insight into DOT’s current market behavior. The Relative Strength Index (RSI) remains neutral, indicating neither overbought nor oversold conditions. Moving averages present mixed signals, with short-term EMAs trending upward while long-term ones remain stable. Psychological resistance near $8.056 remains a key barrier for bulls.
Thus, DOT is at a critical juncture, and the actions of buyers and sellers at this resistance level could determine the market’s next move. Traders should remain vigilant and make informed decisions during this period of uncertainty.
