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The Polkadot (DOT) value reached an all-time excessive value on Jan. 16, whereas the DeFi index adopted swimsuit three days later.
Each ought to proceed rising in the direction of their closest respective resistance areas.
All-Time Excessive Worth
DOT has been rising quickly since breaking out from a descending resistance line on Dec. 28, 2020. DOT continued to rally and reached an all-time excessive value of $19.40 on Jan. 16.
The speed of improve has turned parabolic, and technical indicators have begun to point out weak spot. Whereas the MACD continues to be rising, the RSI has shaped bearish divergence, and the Stochastic Oscillator is shut to creating a bearish cross.
DOT’s Quick-Time period Motion
Cryptocurrency dealer @CryptoMichNL outlined a DOT chart, stating that it has reached the primary assist space at $14.50 and is prone to bounce from right here.
The shorter-term two-hour chart reveals that DOT is following a descending resistance line. It continued to trace this line after reaching the earlier all-time excessive value on Jan. 16.
At present, DOT is within the strategy of breaking out after bouncing on the $15 assist space this morning. Technical indicators are bullish and assist the potential for a breakout.
If it does, the almost certainly goal for the following resistance space is at $26, the three.61 Fib extension of wave 1 (proven in white under). The following goal could be at $32, the 4.61 Fib extension of the identical wave.
The DeFi Index
The DeFi index reached an all-time excessive of $1,391 on Jan. 19. Whereas it dropped afterward, breaking down from the $1,050 degree, it’s presently within the strategy of reclaiming it.
Moreover, the RSI has generated important hidden bullish divergence, an indication of a development continuation. If the index strikes upwards as anticipated, the following closest resistance areas are at $1,400 and $1,800, respectively.
Conclusion
To conclude, each DOT and the DeFi index ought to proceed rising in the direction of their closest resistance areas at $26 and $1,400, respectively.
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