Polkadot has finally managed to break past the rigid price resistance mark of $5. Over the last 24 hours, DOT increased by more than 6%. In the past week, the coin has secured double-digit gains.
Bitcoin moved into its daily chart’s $18,000 price zone, pushing altcoins on their respective charts. Although DOT rallied in the last 24 hours, the altcoin is still not out of the woods. The altcoin must remain above two price levels.
The technical outlook still sided with the bulls, but there was a fall in the accumulation on the daily chart, indicating that there has been a fall in demand. The demand, however, secured by DOT reached a multi-month high. Usually, after being overvalued, the coin starts to retrace on its chart.
Indicators showed that if buyers do not remain consistent, DOT will depreciate on its chart over the subsequent few trading sessions. The altcoin market capitalization fell slightly in the last 24 hours, which meant demand for the altcoin dipped. At the moment, DOT was trading 90% below its all-time high of 2021.
Polkadot Price Analysis: One-Day Chart
DOT was trading at $5.09 at the time of writing. The coin was trading within an ascending parallel channel (blue). The ascending parallel channel marked a bullish force in the market.
At the time of writing, Polkadot broke above the ascending parallel channel, indicating that DOT might consolidate over the subsequent trading sessions before it starts to retrace.
Immediate resistance for the coin stood at $5.30; if it managed to breach that level, it could rally to $5.40. On the other hand, if Polkadot loses its momentum, it will fall to $4.80. The altcoin has to remain above the $4.80 mark, or the bears will take over completely.
Technical Analysis
The altcoin was still in the bullish zone despite a slight fall in demand. The Relative Strength Index (RSI) was above the 60 mark with a minor downtick; this indicated that although demand fell, the price was under bullish control.
Similarly, the asset price was seen above the 20-Simple Moving Average (SMA), which indicated that the bulls were driving the price momentum in the market. As RSI secured a multi-month high, the altcoin traveled above the 50-SMA (yellow) line.
With increased demand, technical indicators pointed out traders could have a buying opportunity. The Moving Average Convergence Divergence suggests price momentum and reversals.
The indicator formed green signal bars tied to buy signals. The Bollinger bands also grew apart in anticipation of a substantial price movement over the next trading session.
Featured Image From Unsplash, Charts From TradingView.com