Polkadot (DOT) is looking to continue its upward trajectory as it approaches a key resistance level at $7.60. Open interest in Polkadot has also seen a notable increase.
With most indicators looking bullish, market watchers expect DOT to go above the resistance at $7.60 and move past the $8 mark.
Polkadot (DOT) Looks To Break Past 20-Day SMA
After a period of consolidation that saw DOT hover between $6 and $7 for most of the previous week, the cryptocurrency looks set for a bull rally. The previous week did not see much movement, as the 200-day SMA acted as significant resistance, with DOT unable to move past $7. DOT’s price remained subdued for the subsequent few sessions after a strong session the previous Sunday. This was the case until Friday, with DOT finding and consolidating support at the $6.40 mark, where buyers were entering the market.
The weekend saw significant price movement as buyers took control of the market, propelling DOT past the 200-day SMA. DOT registered an increase of 8.38% on Saturday, rising to $7.24. Sunday saw a small drop, with the price falling by 1.38%. However, with the 200-day SMA now acting as support, DOT was able to stay above the $7 mark, ending the session at $7.14. Monday saw buyers firmly in control as DOT looked to test the resistance at the 20-day SMA. The cryptocurrency registered an increase of 4.62%, settling at $7.47.
The current session sees DOT at $7.48 as buyers look to push DOT toward the $8 price level.
Is Polkadot (DOT) Preparing For A Rally?
Now, let’s take a look at the DOT price chart. Currently, the cryptocurrency is trading at $7.42, with buyers and sellers struggling to take control of the session. The chart shows that DOT has strong support at $7, thanks to the 200-day SMA. A lower support level also exists at $6.40. In the short term, the 20-day SMA and the 200-day SMA are key reference points for DOT and could significantly impact the cryptocurrency over the next few weeks. DOT is now approaching a key resistance level at $7.60, where the 20-day SMA is currently positioned.
If DOT is able to break past the 20-day SMA, we could see a significant rally that could push it past the $8 mark and toward the 50-day SMA, currently at $9. However, should sellers regain control of the session, we could see the price drop back towards the $7 mark where it has support. Should this level be breached, we could see DOT drop to $6.40.
Indicators Bullish
Looking at the indicators, we can see the MACD has flipped to bullish, indicating that we could see DOT continue its upward momentum. However, should sellers take control of the session, it could flip back to bearish. Meanwhile, the Parabolic SAR is still bearish.
Meanwhile, A popular crypto analyst has highlighted an interesting development regarding DOT, stating that a similar pattern had appeared on the Polkadot price chart at the beginning of the year and that DOT was able to break out of the pattern and go on a bull run, predicting that it could follow the same pattern this time around as well.
The possibility of such an event is not unlikely, given DOT is already showing some bullish signals.
On-Chain Metrics
The analysis of DOT’s on-chain metrics shows a drop in the funding rate on the 22nd of April. This is usually followed by a price hike and can be viewed as a bullish metric. Polkadot also registered an increase in its open interest, indicating that its recent price uptick could continue, at least in the short term. The cryptocurrency’s Relative Strength Index has also seen an uptick and now finds itself close to neutral territory.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
