Polkadot 4h: Regular bullish Divergence - Signs of an Uptrend

8 kwi

In our latest glance at the DOT/USD 4-hour chart, an intriguing pattern unfolds, hinting at potential upside. The price trajectory, previously charting lower lows, contrasts sharply with the Relative Strength Index (RSI) and the Commodity Channel Index (CCI), both of which are sketching higher lows. This bullish divergence suggests weakening downward momentum, potentially foreshadowing a trend reversal.

The CCI's journey above the 100 mark further bolsters this narrative, hinting at an emerging strong uptrend. Traditionally, crossing this threshold signifies robust buying interest, a beacon for bulls eyeing entry points.

Meanwhile, the RSI adds another layer of optimism. Its upward trend, while not yet breaching the overbought territory, indicates growing bullish momentum without the immediate threat of a reversal due to overextension.

A critical target lies ahead: the untouched monthly pivot point at 9.9167. This level acts as a magnet for price, suggesting an ascent toward this mark could be on the horizon, offering a strategic point of interest for traders.

In summary, the DOT/USD pair exhibits promising signs for bulls. The combination of bullish divergence, CCI's strength, and RSI's ascent, alongside the gravitational pull of the monthly pivot, paints a picture of potential upward movement. As always, keep an eye on these indicators for shifts that might affect this outlook.