Polkadot (DOT) price is up over 10% in the last 24 hours and is up an impressive 178.44% over the past 30 days, reflecting strong bullish momentum. However, technical indicators suggest the rally may be fading, with the RSI and CMF showing signs of easing buying pressure.
Although the EMA DOT lines remain bullish, a fading uptrend could lead the price to test support levels. On the downside, regaining momentum could push DOT towards next resistance with a potential breakout at its highest level since April 2022.
DOT RSI cooled down
The DOT RSI is currently at 62, cooling after briefly exceeding 70 for the first time since November 24. This recent move above 70 signaled overbought conditions and strong buying momentum, while the pullback to 62 indicates a slight slowdown.
Despite the pullback, the RSI remains in bullish territory, indicating continued optimism among buyers.
RSI (Relative Strength Index) measures the speed and magnitude of price movements, with values above 70 indicating overbought conditions and values below 30 indicating oversold levels. At 62, DOT’s RSI reflects healthy momentum, although it is no longer at its peak levels.
If the RSI stabilizes or rises back above 70, Polkadot could see another push higher, but a sustained drop below 60 could indicate waning strength and lead to price consolidation or a minor pullback.
Polkadot CMF is still positive
CMF DOT (Chaikin Cash Flow) is currently at 0.07, down from the recent peak of 0.22, the highest level since November 23rd. This decline suggests that while buying pressure remains in place, it has weakened from its previous intensity.
A positive CMF reading still indicates net capital inflows into DOT, reflecting overall bullish sentiment, but the downward trend signals a potential slowdown.
The CMF measures the flow of money into and out of an asset based on price and volume: values above 0 indicate buying pressure, and values below 0 indicate selling pressure. While the DOT CMF remains positive at 0.07, a decline from 0.22 could indicate a decline in bullish momentum.
If CMF continues to fall, it could indicate increasing selling activity, potentially leading to price consolidation or a pullback, while a recovery to higher levels could resume upward momentum.
DOT Price Prediction: Could Polkadot Reach $12 in December?
DOT EMA lines remain bullish, with short-term lines still above long-term ones, signaling continued upward momentum. However, other indicators such as RSI and CMF suggest that the current uptrend may be weakening.
If buying pressure continues to ease, Polkadot price could test the support level at $8.4, with a potential further drop to $7.5 if this support fails.
Conversely, if the uptrend recovers, DOT price could target key resistance at $11.6. A breakout of this level could push the price towards $12, something not seen since April 2022.
