Table of Contents
TL;DR Breakdown
- Polkadot price analysis highlights DOT’s double-digit gains.
- After finding support at $20, Polkadot is going ballistic.
- Polkadot is receiving numerous buy orders, hinting at a surge towards $28.
At the time of writing, Polkadot is one of the most improved crypto assets among the top 10. The crypto asset surged side by side with BTC’s recovery from $32,000 to $37,500.
Polkadot Price Analysis: General price overview
During yesterday’s trading session, Polkadot registered bearish and sideways price movements that saw the crypto coin find support at the critical $20 support level. This level played an important role as it ensured Polkadot does not explore lower price trends.
For about a week, Polkadot has been on a downward trend until yesterday. This price movement came after the token had attempted to turn green in the previous week. The bullish trial was significant to Polkadot as it was more substantial than in many other virtual currencies. Despite the bullish campaign, the bears ended up taking the day as the bearish trend re-entered the crypto market.
Depending on how you view it, the drop in Polkadot’s price was a bullish sign. This is because a price drop means more market participants are likely to buy a crypto asset. Another bullish sign given by the crypto coin is the reality of lower lows getting higher with each passing hour. For instance, Polkadot’s most recent selling spree was considerably smaller than other crypto assets, and it ended trading yesterday above the previous 2 lows.
Polkadot price movement in the past 24 hours
At present, most crypto assets are trading in the green following BTC’s resurgence. Likewise, Polkadot is also registering positive price movements while exchanging hands at around $24 at writing. This price movement marks a 14 percent appreciation, accrued in the last 24-hours. As the crypto coin trades above the $18 to $21 demand zone, Polkadot’s June 7 price dip into this area appears to have availed extra buying pressure from sidelined market participants.
Adding credence to the bullish narrative is the Momentum Reversal Indicator (MRI), which formed a green candlestick on the 24-hour price chart. Usually, this signals buying pressure is high. Additionally, the Moving Average Convergence Divergence technical indicator supports the bulls’ initiative of scraping the seller congestion, currently at $28. If Polkadot bulls manage to do this, the crypto coin price could catapult beyond $30. As a technical momentum indicator, the MACD follows and predicts the price action of an asset. Moreover, seeing that the MACD line is moving above the 0.00 signal line confirms Polkadot is currently on a bullish trajectory.
Polkadot 4-hour chart
According to the 4-hour chart, Polkadot’s Relative Strength Index cements the bulls’ takeover of the coin’s price movement. Usually, the RSI assists in tracking the price action of an asset by measuring its momentum. It is worth noting that a drastic action towards the overbought region on the RSI indicator will confirm the bulls’ enthusiasm.
Conclusion
The Relative Strength Index is very resourceful as it identifies whenever a crypto asset is bearish or bullish. This is usually examined by looking at whether the asset is overbought or oversold. Therefore, as the technical indicator teetering around level 45, it is evident Polkadot is far away from being overbought, hence the opportunity of the bulls to take over the coin.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
