Polkadot finally managed to break the $5 price resistance mark. Over the last 24 hours, DOT has increased by more than 6%. In the last week, the coin has made a double profit.
Bitcoin moved to the $18,000 price zone on a daily basis, pushing altcoins on their respective charts. Despite the DOT rally in the last 24 hours, altcoins are still not out of the woods. Altcoins should stay above two price levels.
The technical outlook is still stable, but there is an accumulation of accumulation on the daily chart, which indicates that there is a decrease in demand. However, DOT-secured demand reached a multi-month high. Usually, after being overvalued, the coin starts to retrace on the chart.
Indicators show that if buyers do not remain consistent, DOT will shrink on the chart over the next few trading sessions. The market capitalization of altcoins has decreased slightly in the last 24 hours, which means that the demand for altcoins has dipped. At the moment, DOT is trading 90% below its 2021 high.
Polkadot Price Analysis: One Day Chart
DOT is trading at $5.09 at the time of writing. The coin is trading in an upward parallel channel (blue). An upward parallel channel indicates a bullish force in the market.
At the time of writing, Polkadot broke above the parallel upward channel, indicating that DOT may consolidate through the next trading session before starting to retrace.
The immediate resistance for the coin stands at $5.30; if it can publish that level, it can collect $5.40. On the other hand, if Polkadot loses momentum, it will drop to $4.80. The altcoin must stay above the $4.80 mark, or the bears will take it all.
Technical Analysis
Altcoins are still in the bullish zone despite low demand. The Relative Strength Index (RSI) is above the 60 mark with a small downtick; this shows that even though demand is collapsing, prices are under bullish control.
Additionally, asset prices are seen above the 20-Simple Moving Average (SMA), which indicates that the bulls are driving price momentum in the market. As the RSI hits a multi-month high, the altcoin crosses the 50-SMA line (yellow).
With increased demand, technical indicators show traders may have a buying opportunity. The Moving Average Convergence Divergence suggests price momentum and reversal.
The indicator forms a green signal bar that is tied to a buy signal. Bollinger Bands are also widening in anticipation of significant price movements during the next trading session.
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