TL; DR breakdown
- The DOT price prediction shows that the DeFi token is in an uptrend after cutting through a bullish pennant pattern.
- According to Polkadot’s Momentum Reversal Indicator (MRI), the cycle top signal is showing signs of slowing towards the current price rally.
- If Polkadot doesn’t break the $ 37.6 mark, a bearish outlook could come into play.
The crypto market has had a good run since the beginning of the year. Most cryptocurrencies made new highs. Right now there seems to be a new wave of uptrends in the market. For example, the polkadot price movement has been on the up for almost two weeks. Despite this bullish outlook, DOT prices could see some correction before continuing their uptrend.
DOT Price Prediction: General Price Overview
Between January and April, DOT’s price saw a significant price correction after seeing an impressive 190 percent bull run. While the initial rise in price can be viewed as a flagpole, the second rise can be viewed as a pennant. When Polkadot connected between the two trend lines, it created the right environment for higher lows and lower highs in the consolidation period and created a pennant.
The technical pattern currently formed is a continuation pattern that predicts a price increase of 60 percent. This is determined by counting the height of the flagpole with the breakout line at $ 37. Currently, the technical indicator is signaling that Polkadot is about to embark on a new bull rally that could hit a new all-time high of $ 62.45. This prediction is confirmed by the price move on April 2nd, when the cryptocurrency moved above the pennant’s upper trendline. Whenever that happened, it indicated the start of a new bullish rally. If the rally goes through it will be a whopping price improvement from the $ 30 price in February and March.
DOT price movement in the last 24 hours
According to DOT’s 24-hour chart, the DeFi token opened day trading at $ 44.088, a 16 percent increase in price from the support line of $ 43.3. At the time of writing, Polkadot is exchanging hands at around $ 43.39 but is showing positive signs of an increase.
While things might seem like they are favoring the crypto coin, Polkadot traders should keep an eye on the current level of retracement. If a price correction occurs and Polkadot pulls past the $ 37 region, the current bullish narrative may be at risk and trigger a bearish outlook. In such a case, short-term investors might decide to sell their assets, pushing Polkadot further down the pennant formation. In this case, DOT must retest the closest demand barrier in the $ 33 region that corresponds to the 78 percent fibo retracement level.
DOT 4-hour chart
According to the DOT 4-hour chart, the moving averages are moving up while the RSI is floating in the positive zone. This suggests that Polkadot expects an uptrend in the short term. Additionally, investors appear to be aggressively accumulating DOT tokens right now, driven by the sharp rebound in the 20-EMA. This reinforces the narrative that Polkadot is on its way to bypass the $ 46.9 mark.
If the DOT price move moves down from the current region and falls below the 20 EMA level, then supply will outstrip demand. The effects of such a move would lower DOT prices towards 50-SMA.
A lot seems to be going in the direction of the Polkadot Prize and the network lately. For example, Kwikswap, an Ethereum-based decentralized network, announced that they will be launching their Kwikswap Version 2 Testnet on Polkadot’s ACALA platform.
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