- The DOT/USDT pair has risen significantly, rising more than 15 percent.
- Our Polkadot price analysis shows that the resistance at $29 has been broken.
- If the Polkadot price fails to turn this zone into support, we can expect retracements.
Polkadot has become one of the top crypto gainers today as it gained more than 15 percent. Another top contender for this spot is Solana (SOL), gaining around 14 percent today. The market has acquired a bullish momentum, and now, we might expect altcoins to rise by huge margins today. Bitcoin was also able to maintain a support level at the $47k mark.
It has been quite a month for Bitcoin, as it was able to turn the bearish trend into a bullish rally, and after that, altcoins have also seen a lot of growth. LUNA and SOL are the topmost gainers as compared to other altcoins. Today, Ethereum has also gained about 6 percent as the entire market is now accelerating positively. But, in order to predict future prices, we will today be using our Polkadot price analysis.
Also, if you are looking to invest in DOT for the longer term, it would be much better to have a look at our Polkadot Price Prediction from 2021 to 2025. Here, you can find price projections for all the years between 2021 and 2025. So, let’s dive deeper into our Polakdot price analysis.
Detailed study of the 4-hour chart: Polkadot price analysis confirms a bullish breakout
In the DOT/USDT 4-hour chart below, it is clearly visible that we are witnessing what we were not able to witness in the months of June-July, i.e., a bullish breakout. The chart has been green all day long, and the Polkadot price has broken above the strong resistance that was present at the $29 level. This was a key movement, and if the price is able to form support here, we might see a future breakout above $30 for the DOT/USDT pair.
The first indicator that we will consider today are the Bollinger Bands and from the reading below, it is clear that the price broke out from the upper corner a few hours ago. Considering the key Moving Averages on the 4-hour chart, the price is trading above the 50-day and the 100-day Moving Averages. The current BTC/USD price rests at $47.7k, which is acting as a support level. If Bitcoin is able to maintain this level and push further, it is clear that we will see all the altcoins rise above their resistances, including Polkadot.
For the 4-hour chart below, we have readings from the MACD indicator and the RSI indicator. The two indicators play a vital role in displaying the market demand for a cryptocurrency. Currently, the trading volume for DOT/USDT has seen a surge of 291.27 percent.
The reading has breached the natural zone and entered the overbought zone as regards the RSI levels. The reading is 73. The overbought position indicates that this might be a good chance to sell the DOT you have in hand and buy at lower prices. Although in case Bitcoin makes its move above $48k, it would be beneficial to keep holding your currencies until the arrival of a red engulfing candle.
For the MACD indicator, the histogram has been flashing green, and the MACD indicator has pressed down the signal line or the orange line. This confirms a bullish divergence for MACD on the 4-hour chart,i.e., higher prices could be reached after some cool-off.
Polkadot price analysis: Conclusion
A direct conclusion that can be made from the above Polkadot price analysis is that the price movement is definitely bullish, and if Bitcoin is able to make its move and rise above $48k, we might see higher prices. Otherwise, we might experience a cool-off period.
Great news surrounding the Polkadot network involves the discussion on DAOs wherein there will be talks about the various new ways using which DAOs are being used. This is another application of the Polkadot Network.