Polkadot Price Analysis: The DOT Token Struggles To Break The $28 Barrier

• DOT token chart shows a golden crossover of the 50 and 200-day EMA  
• The DOT/BTC pair was trading at 0.0005337 BTC with a loss of 0.04%
• The 24 hr trading volume in DOT is $1.14 Billion

On 24th August, the bull rally of DOT token faced strong rejection from the $28 mark projected by a long bearish candle in the daily time frame. However, the price immediately took support from the nearest support of the $23 mark with a bullish engulfing candle, which has brought the coin’s price back to the overhead resistance to test this level as valid resistance.

As per the EMA’s, the DOT token is in a strong bullish trend as the price is moving higher than the crucial EMA’s of 20, 50, 100, and 200. Moreover, the chart also shows a golden crossover of the 0 and 200 EMA, attracting more buyers in the market.

The RSI (BULLISH) value is at 58, indicating a bullish sentiment in the token. However, the RSI line has shown a substantial drop in its value concerning the current retracement in price action.

DOT Token Forming A Head And Shoulder Pattern

The DOT token shows the formation of a shoulder and head pattern in the 4hr time frame. The pattern has its crucial support level(neckline) at the $23 mark. Currently, the price is completing the right shoulder portion of this pattern, and once the price gives a breakdown from the neckline, the DOT traders can grab an excellent short opportunity for them.

The MACD indicator (BULLISH) shows signal and MACD lines moving below the neutral zone (0.00), indicating a bullish momentum in the DOT token. Moreover, the indicator also projects a possibility of a bearish crossover, which will be an excellent confirmation for an H&S pattern.

Conclusion: From the technical perspective, the overall trend of DOT token is bullish. However, as mentioned above, the chart displayed the formation of a head and shoulder pattern, preparing an excellent short opportunity for its trader. Thus, If the price manages to break down from the $23.5 neckline, the DOT traders can take a short entry with an expected target of around the $20 mark.

Support– $23.5

Resistance– $27-28