While Bitcoin has already hit a new yearly high of $ 13,859 filling the ecosystem with positivity, Polkadot (DOT) has not managed to jump higher with such enthusiasm, but it may be close to doing so.
This token has been one of the most talked about during the current year, after it suddenly entered the TOP 5 of the crypto market. He currently occupies the TOP 9, and is determined to remain among the biggest.
At the time of this writing, DOT is trading at $ 4.43, with losses of 6.6% in the last 24 hours, and gains of 10.28% in the last 7 days.
Let’s analyze the behavior of its current price in order to forecast its near future.
After an impressive jump to the upside, Polkadot has been in retreat for 9 weeks
In mid-September, when Polkadot was renamed by increasing the supply 10 times, its price saw an incredible jump upwards.
DOT quickly peaked at $ 6.86, then started a 45.21% correction that so far has taken 9 weeks.
However, this bearish behavior has not been something that can worry those who store the token, since the fall has had a much smaller volume than the rise, so it still remains a totally necessary and healthy setback.
This retracement seems to have already bottomed out in the support zone around $ 3.78.
Even from the weekly chart there is no behavior, which indicates that the upward trend is resuming in the medium term. A good confirmation that this is happening is through an effective break of the resistance at $ 4.61.
Short term trend
In the daily time frame, a clearer upward behavior of Polkadot is already being observed, as a result of continuous breaks in resistance.
The 8 EMA and 18 day SMA moving averages are crossed to the upside, and may function as dynamic supports as price moves back today.
From this graph we can see how the downtrend line that remained for several weeks was broken.
In addition, an inverted Shoulder Head Shoulder can be identified, indicating a change in trend. The neckline of this formation has already been broken, and is currently being tested near $ 4.35.
If the bullish behavior that we are observing continues, the next objective is at $ 5.35. Higher up is the zone of highs surrounding $ 6.5.
If we consider that what we are seeing is the resumption of the medium-term trend, those close resistances are probably not even relevant obstacles, when the price is looking to mark a new all-time high.
I dare say that right now the moment is throwing a good buying opportunity for Polkadot, with a conservative stop loss below $ 3.53.
All our publications are informative in nature, so in no case should they be followed as investment advice.