At the time of writing, the trading price of Polkadot (DOT) is hovering around $10.55. The data shows that the $10.55 price is the 20-day EMA for DOT. The bulls seem to be facing a lot of resistance coming from the bears at the 20-day EMA mark.
The graph shows how the bears have been selling all the rallies that have the potential to push DOT over the 20-day EMA. However, the bulls are also not letting the bears take full control of the situation.
For now, it is a stalemate situation for both sides as neither of them is able to drive the trend of DOT in their favor. Whenever the bears are selling DOT on a higher scale, the bulls are countering it with strong buying sentiments.
With this strategy, the bulls have been able to sustain the pressure coming from the bears at the $10.55 mark. They may have let the bears bring the price of DOT close to the $10 mark. But they haven’t let them pull DOT below $10.
This is a display of power and control by the bulls but it is not going to last for long if the bulls are not able to intensify their buying power.
Journey of DOT to Strong Overhead Resistance Mark
If the bulls want to last longer in the challenge and want to keep control of the trend, they will eventually need to empower themselves. They will need to push the trading price of DOT with strong buying sentiments. This would allow them to push the bears out of the competition and bring more investors in favor of the bullish trend.
Only this way, the bulls will be able to push DOT above the 20-day EMA. Above the $10.55 mark, the bulls will continue with their strong buying trend and the bears may also start moving back.
The bears may lose their energy to compete with the bulls and when that happens, DOT’s price may move up to $12. From this mark, things may become easier for the bulls and they may continue with their buying spree.
As the bulls keep buying DOT, the trading price of DOT may grow all the way up to a high of $14. Given the current market situation, the $14 benchmark is the strong overhead resistance checkpoint for DOT.
DOT’s Decline to $8
If the bulls do not demonstrate much buying power and keep running in the loop, then the bears may launch a stronger selling attack. This would allow them to pull the trading price of DOT below the $10 mark.
If that happens, then the next checkpoint the bears may try to hit would be the $9 mark. This way, the bears will be able to build up a stronger team in order to keep the bearish trend going.
If the bears succeed in doing that, then the trading price of DOT may decline to $8.