DOT Traders Looking to Open Longs Should Watch Out, Here’s Why

• DOT recovered from its slide on December 19 and jumped to $8.45 
• While the token’s momentum may increase upwards, there could be a reversal down to $7.50.
• The DMI suggests that DOT could gain another 20%, putting it in pole position to hit $10.

The price of Polkadot (DOT) crossed the $8 mark on December 21, thanks to a 7.02% increase in the last 24 hours. The increase marked a moment of relief for DOT holders who endured a downtrend period between December 13 and 19.

During that period, selling pressure led the Polkadot native token to fall from $7.63 to $6.52. However, the $6.52 region quickly turned into support and was crucial to the DOT’s rise to $8.45.

DOT Is Not Stopping Yet

From the technical point of view, it does not seem like DOT would end its uptrend at $7 or $8. This was because of the Awesome Oscillator (AO) state as shown on the 4-hour DOT/USD chart. 

At press time, the AO was 1.02. With increasing green bars, the indicator showed that DOT was experiencing increasing upward momentum. Although DOT slightly fell to $7.92, there was a likelihood of rising back to the $8 region.

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