Polkadot's (DOT) price has made a nice uptrend throughout October with an attempt to reach the all-time high at $50.76. But bulls got stopped in their tracks and hit a curb at the monthly R2 resistance level around $47.50. The Relative Strength Index (RSI) is already showing an uptick in buy-volume, and bulls are restarting the rally towards new all-time highs.
On Tuesday, Polkadot's price hit a curb in a failed attempt to break above the monthly R2 resistance level at $47.50. That monthly R2 was the only resistance that was in the way for DOT bulls to push Polkadot price towards new all-time highs. Instead, the DOT price failed to break through and dipped back below $45.22, which was a historical pivot level.
With the RSI showing an uptick towards more buy-activity, it looks like buyers are stepping back and are trying to reclaim $45.22. With renewed volume on the buy-side, expect a break of the R2 resistance level, which will trigger more buyers to jump into the price action. Once beyond R2, it is just a $3-move before making new all-time highs.
As the restart of the bull rally will demand quite some strength and effort, expect the DOT price to be rejected again at the R2. At that level expect bulls to flee the scene as bears are likely to put up a determined defense, and DOT price will probably start to break below the green ascending trend line again. Expect a nosedive reaction after that break towards $37.03 and $31.61 in the short-term, should the correction accelerate.
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