Crypto NewsPolkadot (DOT)

Polkadot could represent a buying opportunity as the bullish outlook persists

the polka dotsprice broke the $5 resistance level in the past trading sessions. In the last 24 hours, DOT is up 3.8%. The price of Bitcoin has skyrocketed, causing other altcoins to move up their respective charts as well.

As Bitcoin surpassed the $18,000 price level, other altcoins broke through their immediate resistance levels. Polkadot price momentum remains bullish on the shorter time frame. The technical outlook for DOT showed that despite a price correction, accumulation on the chart has increased.

Polkadot demand also showed a surge on its chart. The price of the asset needs to remain above the $5.40 support line and break the $6.20 resistance line if the coin needs to maintain a bullish stance for an extended period of time.

The daily chart of DOT is also pointing to an imminent price decline, meaning traders could be presented with short opportunities. Currently, DOT is being hedged at an 89% discount to its 2021 lockout all-time high traded.

Polkadot could represent a buying opportunity as the bullish outlook persists, Crypto Trading News

Polkadot Price Analysis: One-Day Chart

Polkadot could represent a buying opportunity as the bullish outlook persists, Crypto Trading NewsPolkadot was priced at $5.89 on the one-day chart | Source: DOTUSD on TradingView

DOT was exchanging hands at $5.89 at the time of writing. Polkadot had formed a cup and henle pattern, meaning that the bullish momentum may hold, hence Polkadot continued its journey north on the daily chart.

overheadResistance for the coin was $6. Falling the $6 mark can take the coin to $6.20. Since Polkadot was overbought, demand for the coin increased and could trickle down.

This can cause the price to fall for a few trading sessions before starting to rise again. In the event of a price decline, DOT will meet its local support at $5.40 and then $5.33.

Both of these levels can be an entry point for buyers as the altcoin will appreciate in value after touching these support lines. The Polkadot lot traded in the last session was still green, indicating that the buying pressure was ongoing.

Technical Analysis

Polkadot could represent a buying opportunity as the bullish outlook persists, Crypto Trading NewsPolkadot showed an increase in demand on the one-day chart | Source: DOTUSD on TradingView

The asset had hit a multi-month high on demand registration for the past week. The coin was overvalued a week ago, and as a result, demand has fallen slightly. The Relative Strength index fell back from the 80 level, which was a sign that the asset was overbought.

At press time, DOT was once again trending higher, indicating that purchasing power was rebuilding. With this in mind, the price of DOT was above the 20-Simple Moving Average line, suggesting that buyers are driving the price momentum in the market.

The coin was also above the 50-SMA (yellow) line. Despite this, the 50 SMA line crossed the 20 SMA line, signifying a death cross. A death cross means an incoming loss of value. This value corresponds to traders who find an opportunity to short the asset.

Polkadot could represent a buying opportunity as the bullish outlook persists, Crypto Trading NewsPolkadot showed bearish buy signals on the one-day chart | Source: DOTUSD on TradingView

The Moving Average Convergence Divergence (MACD), which plots price momentum and reversals, showed bearish buy signals. This means that the price will fall in the next trading session.

The Parabolic SAR is also siding with the MACD as the dotted lines have formed above the price candle, indicating that the asset’s price direction has started to turn negative. Overall, the bulls could continue to dominate the price action in the shorter term.

Featured image by UnSplash, charts by TradingView.com

Source: Crypto News Deutsch

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