Polkadot price is up 8%, but will it sustain the bullish momentum?

• Polkadot price is up 8% after obtaining bullish momentum at $5.37, but the uptick seems unsustainable. 
• Overhead pressure from the 100-day EMA at $6.09 could dissuade the rally.
• The bearish contention will be invalidated if the altcoin records a decisive daily candlestick close above the $6.127 resistance level.

Polkadot (DOT) price obtained bullish momentum on March 12 right in the middle of a joint statement from the US Treasury Department, the Federal Reserve Bank, and the FDIC that all Signature Bank and Silicon Valley Bank (SVB) depositors will be reimbursed. However, the altcoin has been unable to make a decisive move upwards as it was facing a lot of upward rejection. This could see the token lose all the ground covered over the weekend.

Polkadot price current rally could be premature

Polkadot price exploded 9.6% on Sunday, March 12, reaching a high of $5.903 as bulls took the lead. Trading activity for the token is up almost 42% in the last 24 hours to $326.6 million. However, despite increased activity for the altcoin, DOT has been unable to go past the Sunday high due to a lack of sufficient catalyst to fuel the rally.

At the time of writing, Polkadot price is $5.888, as the token confronts immediate resistance due to the 100-day Exponential Moving Average (EMA) at $6.094. Given the lack of significant stimulus, investors are not very optimistic about the rally, and overhead pressure around the said barrier could send DOT downward.

Accordingly, the Polkadot price could drop below the supplier congestion zone at the $5.800 support level. Below, the price could nosedive to tag the $5.372 support level next, or worse, to the $5.015 level.

In extreme cases, the Polkadot price could descend to the $4.478 swing low or tag the $4.290 support floor before another resolute move northward. Such a move would denote a 27.16% drop from current levels.

DOT/USDT 1-day chart

 

On the downside, if buying pressure increases, Polkadot price could soar past the 100-day EMA barricade at $6.094 before confronting the $6.127 resistance level. A decisive flip of this hurdle into support will invalidate the bearish thesis.

Upward, Polkadot price would have to break past the 50-day EMA at $6.153 before targeting the next roadblock at the $6.704 resistance level.

An attempt to tag the 200-day EMA at $6.924 would be an extremely ambitious case and highly unlikely for the moment, given the general bearish sentiment. Such a move would constitute a 17.71% increase from current levels.

 

---