Polkadot (DOT/USD) Slips Rejected at 24.66 – A Quick Trade Setup - Forex News by FX Leaders
Ethereum - ETH/USD Chart

Polkadot (DOT/USD) Slips Rejected at 24.66 – A Quick Trade Setup

Posted Wednesday, August 18, 2021 by
Arslan Butt • 2 min read

The DOT/USD coin pair maintained its bullish rally of the previous-day, drawing further bids above the $27.00 level. Polkadot has recorded impressive double-digit gains on the day, and still counting. The 16% increase came after the DOT rose above the previous barrier at $24. At the time of writing, the Polkadot was dancing slightly above $27, while the bulls were looking towards $32.

The immediate upside is capped by the 200-day Simple Moving Average (SMA), which prevents closing of the bullish leg at $28. On the other hand, Polkadot could see another enormous surge above $30 as soon as this sellers’ bottleneck zone is pushed out of the way.

The area at $32 is the next key level that may act as another speed brake before DOT begins the journey toward an all-time high of $50. Surprisingly, the positive bias surrounding the Polkadot appeared even after Bitcoin failed to clear $48,000 and corrected lower against the US Dollar. Likewise, most significant altcoins are losing ground.

 

DOT/USD

ETH was surpassed twice near USD 3,325, and it started a downside correction. The Ripple failed to cross USD 1.30 and corrected lower to USD 1.20. Meanwhile, Litecoin (LTC) was unable to clear the USD 188 resistance. It is correcting gains and trading near the USD 180 level. DOGE is also correcting gains, and trading below the USD 0.330 level. The first key support is near USD 0.320, below which the price could test the USD 0.300 level. Despite the bearish sentiment in the crypto market, Polkadot rallied over 15%, and it broke the USD 25 resistance.

Even the strength of the broad-based US dollar failed to have any negative impact on the Polkadot coin. The greenback extended its previous positive performance, remaining well bid on the day, as investor concerns over the global economic recession, amid rising numbers of  COVID-19 cases, boosted the demand for safe-haven assets, including the US dollar. Moving on, US Federal Reserve Chairman Jerome Powell is set to deliver a speech at a town hall address for educators later in the day. However, it is broadly anticipated that he will not discuss monetary policy at this meeting, but that he is more likely to wait until the central bank’s Jackson Hole symposium. Therefore, the upticks in the US dollar are not impacting the DOT/USD coin pair prices, at least for now.

 

Ethereum - ETH/USD Chart

The weakness of the broad-based US dollar is one of the key factors that is helping to limit deeper losses in the LTC/USD prices. On the USD front, the broad-based US dollar failed to extend its positive early-day performance, turning sour during the second half of the Asian session. This could be tied to the disappointing US Retail Sales data that was released recently, which raised doubts over economic recovery in the United States, therefore contributing to the slump in the greenback. Meanwhile, the cautious sentiment ahead of the release of the minutes of the Federal Open Market Committee (FOMC) meeting also played a major role in undermining the dollar.

Lastly, the DOT/USD is trading below the daily pivot point resistance level of 24.66, and closing below this is likely to drive the selling trend until 23 and 21.93. The RSI and 50 day moving average are also in support of a selling trend today. In contrast, a breakout at the 24.66 level could trigger a bullish trend until the 26.27 and 29.10 levels in the coming days.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments