DOT Price Analysis: Polkadot Rides Ascending Channel Near All Time High, Will Bulls Break $40?

By

Domenic

Published 10 mins ago Updated 10 mins ago
  • DOT  Price is down nearly -9% over the last week
  • Price has been stuck in an ascending channel over the last month
  • DOT has been holding the 200MA as support

Polkadot has been performing better than the overall market over the last few weeks. Along with ALGO, ATOM, AVAX & more, DOT has been riding in a strong uptrend despite other major cryptocurrencies showing a lackluster direction. This indicates DOT is overall more bullish than most of the other top 10 coins & is on track to blast to a new all time high very soon.

Polkadot’s blockchain is very capable of achieving what the ETH blockchain does but in a much more efficient way.

Since DOT’s large breakout on August 1st, price has been in a very strong uptrend which has produced nearly 100% of gains in a little over a month. This price action has formed what is known as an ascending channel as bulls and bears have equally defended both sides of its channel (shown in blue). For DOT to experience any parabolic moves, price must break either trend of its ascending channel. At the time of writing, DOT is attempting to break the major resistance zone of $34.58. If bulls manage to break & hold this resistance zone, DOT will be free for a push to its given targets.

advertisement

Polkadot Price Analysis: DOT/USDT 4 Hour Chart 

TradingView Chart

TradingView Chart
Just over the last day, DOT has been respecting $32.06 as a strong support level. As long as this continues to hold as support, price will be in position to break the major resistance zone which is holding back DOT from a large move. Considering that Polkadot is close to the bottom trend of its near 45 day channel, we must be aware of the possibility of a larger downfall. If bears assert more dominance & pull DOT below this zone, price must hold the bottom trend of its channel along with the 200MA which has held as support for 6 weeks. Any break below this will trigger a bear trend.

While looking at the Stochastic RSI, we can see much indecision is taking place as strength is attempting to break over the 50 value back into bullish territory. If this break occurs, DOT will be free for a push to its major resistance zone. The MACD has been curling around looking ready to bounce back above the 0 value. The histogram seems ready to tick green for the first time in nearly 5 days.

DOT Intraday Analysis

Spot rate: $34.29

Trend: Bullish

Volatility: Medium

Support: $32.06

Resistance: $34.58

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author

You May Also Like