Polkadot‘s price is expected to carry on rising as it nears the significant barrier at $7.60. The number of open bets on Polkadot in the derivatives market has grown noticeably.
Based on the positive signals from many market indicators, experts believe that the price of DOT may surpass the current resistance at $7.60 and reach new heights beyond $8.
Polkadot (DOT) Looks To Break Past 20-Day SMA
For about a week, DOT‘s price stayed around $6 to $7 without significant change due to the 200-day moving average acting as a major barrier for growth. Following a strong surge on Sunday, the cryptocurrency experienced a quiet period with minimal activity. However, starting from Friday, DOT started gaining traction and found support at approximately $6.40, encouraging buyers to jump in.
Over the weekend, DOT experienced notable price changes as buyers gained momentum, pushing the currency above its 200-day Simple Moving Average (SMA), resulting in a 8.38% increase on Saturday to reach $7.24. On Sunday, there was a slight dip with a decrease of 1.38%, but DOT remained above $7 due to the 200-day SMA serving as support. Buoyed by buyers’ strength, DOT attempted to breach the resistance at the 20-day SMA on Monday, registering a gain of 4.62% and closing the day at $7.47.
The current session sees DOT at $7.48 as buyers look to push DOT toward the $8 price level.
Is Polkadot (DOT) Preparing For A Rally?
Now, let’s take a look at the DOT price chart. Currently, the cryptocurrency is trading at $7.42, with buyers and sellers struggling to take control of the session. The chart shows that DOT has strong support at $7, thanks to the 200-day SMA. A lower support level also exists at $6.40. In the short term, the 20-day SMA and the 200-day SMA are key reference points for DOT and could significantly impact the cryptocurrency over the next few weeks. DOT is now approaching a key resistance level at $7.60, where the 20-day SMA is currently positioned.
If the price of DOT manages to surpass its 20-day Simple Moving Average (SMA), there’s a good chance it will trigger a strong rally, potentially propelling it above the $8 mark and approaching the 50-day SMA, now at $9. On the other hand, if buyers lose control during trading sessions, the price could slide back down to the $7 region, where it has previously shown stability. Should this support level weaken, DOT might dip as low as $6.40.
Indicators Bullish
Based on the chart indicators, the MACD line has switched to a positive position, signaling that DOT may continue its price increase. But if selling pressure takes over, the MACD could change direction and become negative again. At the moment, the Parabolic SAR remains bearish.
Currently, a well-known cryptocurrency expert has pointed out an intriguing occurrence relating to DOT. He noted that a comparable pattern emerged on Polkadot’s price chart at the start of the year, allowing DOT to break free from it and experience a significant surge in value. The analyst suggests that DOT may repeat this trend once more.
It’s not impossible for such an event to occur, considering that DOT is currently displaying some positive trends.
On-Chain Metrics
On April 22nd, DOT‘s on-chain data revealed a decrease in its funding rate. Historically, this decline is often preceded by a surge in price and can signal a bullish trend. Moreover, Polkadot noted an uptick in open interest, suggesting that its recent price rise might persist, at least temporarily. The cryptocurrency’s Relative Strength Index has also risen and is approaching the neutral zone.
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2024-04-23 11:13