Did Polkadot and Cardano Joining Forces Have an Impact on the DOT Price Increase?

Crypto News – The price of Polkadot (DOT) broke out from a declining resistance trend line and reclaimed the $4.30 horizontal area as a result of the team’s announcement of cooperation with Cardano to use Substrate.

Did Polkadot and Cardano Joining Forces Have an Impact on the DOT Price Increase?

The price of DOT has been below a trend line of declining resistance since February, according to the technical analysis conducted on a weekly time frame. October’s low was $3.56 as a result of the drop. Furthermore, a breakdown from the $4.40 horizontal support area was brought on by the downward trend. Given that the region had already offered support since the beginning of the year, this was a crucial development.

But during the last four weeks, the DOT price has gone up. It recovered the $4.40 horizontal area and broke clear of the falling resistance trend line last week. This suggests that the earlier breakdown was merely an anomaly.

DOT Price Forecast According to Charts

Based on the most plausible Elliott wave count, the price finished a five-wave downward trend (white wave count), which began with the November all-time high. If this is the case, a fresh downward trend in the price of Polkadot has started. Both would result in a significant increase, even though it’s unclear if the increase marks the start of a fresh bullish trend reversal or an upward correction.

The weekly RSI’s bullish divergence that has grown since the year’s beginning lends support to the trend’s continuous higher trajectory. Bullish trend reversals are usually preceded by such bullish divergence, which usually happens near trend bottoms. Its significance is increased by the fact that it coincided with the $4.40 area’s recovery and the conclusion of a five-wave upward trend.