Polkadot price has breached the $5 resistance mark in the past trading session. Over the last 24 hours, DOT is up 3.8%. The price of Bitcoin has risen, which has caused other altcoins to rise in their respective charts as well.
When Bitcoin crossed the $18,000 price mark, another altcoin broke the immediate resistance mark. Polkadot’s price momentum remains bullish in the shorter term. The technical outlook for DOT shows that despite the price correction, the accumulation on the chart is increasing.
Polkadot demand also shows an increase in the chart. The price of the asset needs to stay above the $5.40 support line and breach the $6.20 resistance level if the coin is to maintain its bullish stance for a longer period of time.
The daily chart from the DOT also shows prices entering, which means traders may be presented with a short opportunity. Currently, DOT is trading at an 89% discount from its 2021 high.
Polkadot Price Analysis: One Day Chart
DOT is changing hands at $5.89 at the time of writing. Polkadot has formed a cup and handle pattern, which means the bullish momentum can continue, so Polkadot continues its journey north on the daily chart.
Overhead resistance for the coin is at $6. Toppling the $6 mark can take the coin to $6.20. Because Polkadot is overbought, the demand for the coin may decrease.
This can cause prices to drop for a few trading sessions before starting to rise again. In case of price retracement, DOT will find local support at $5.40 and then at $5.33.
These two levels can be entry points for buyers, as altcoins will rise in value after touching these support lines. The number of Polkadots traded in the last session is still green, indicating that buying pressure remains.
Technical Analysis
The asset has hit multi-month highs to register demand in the past week. The coin has been overvalued a week ago, and as a result, demand has retraced slightly. The Relative Strength Index is down from the 80 mark, which is a sign of overbought assets.
At press time, the DOT again registered an uptick, indicating that buying strength is rebuilding. On that note, DOT prices are above the 20-Simple Moving Average line, signaling that buyers are driving price momentum in the market.
The coin is also above the 50-SMA line (yellow). However, the 50-SMA line crosses above the 20-SMA line, which means a death cross. The cross of death means falling at the cost. This reading is suitable for traders who find opportunities to accelerate the asset.
Moving Average Convergence Divergence (MACD), which represents price momentum and reversal, indicates a bearish buy signal. This means that the price will fall in the next trading session.
Parabolic SAR is also side by side with MACD because a dotted line is formed above the price candlestick, indicating that the asset price direction is starting to go negative. Overall, bulls can continue to dominate price action in the shorter term.
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