Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => DeFi tokens => Topic started by: Trumpet on June 09, 2021, 05:22:42 AM
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DOT
On May 23, DOT reached a low of $13.63 and bounced. The ensuing upward movement took it to a high of $28.60 on June 3. The token has been moving downwards since.
The overlap (red line) with the previous low of $26.63 indicates that the ongoing decrease is an A-B-C corrective structure instead of being a bearish impulse. Furthermore, waves A:C (orange) had a 1:1.61 ratio, common in such structures.
Technical indicators do not provide clear signs of a reversal. The MACD has given a bullish reversal signal but is below zero. Similarly, the RSI is increasing but is below 50. Finally, the Stochastic oscillator has yet to make a bullish cross (green circle).
Therefore, it is not yet certain if DOT will make another low or create a higher low instead.
Chart By TradingView
The DOT/BTC pair does look more bullish than its USD counterpart. This is mostly due to the reclaim of the 56,000 satoshi support area, which previously acted as resistance in 2020.
After breaking out, DOT has validated it as support numerous times, most recently on May 23.
However, similarly to the DOT/USD pair, technical indicators have yet to confirm the bullish reversal, providing the exact same readings.source (https://beincrypto.com/defi-tokens-create-higher-lows-after-reversal/)