Disclaimer: The results of the following analysis are the sole opinion of the author and should not be construed as investment advice
The polkadot market has grown in value by at least 368% since the beginning of the year. While the year started with a single digital value of $ 7, it was trading above $ 40 at press time.
The growth in decentralized funding and the rally in the crypto market could be the reason for this surge. With a market cap of $ 38 billion, DOT was ranked seventh on CoinMarketCap’s list.
The DOT hourly chart highlighted that the coin had gone through a period of correction. After staying well above the support at $ 41, the coin collapsed on April 6th. The value of the digital asset was sent down to just $ 37, whereupon a trend reversal began to emerge.
At press time, DOT was rising within an upward channel, but since the previous trend was bearish, the likelihood of a fall in prices seemed greater than a rise in the market.
The 18% correction in the DOT market resulted in massive volatility and bear market in the short term market. After the correction and retracement, the Bollinger Bands still appeared to be diverging, indicating the high volatility of the current market. Meanwhile, the rise also squeezed the signal conduction under, which projected this rise in DOT.
Meanwhile, the 50 moving average stayed above the candlesticks and was a resistance point for the price hike. However, other indicators weren’t very interested in the cops’ takeover.
The Relative Strength Index determined that the asset was in a state of equilibrium, in which buying and selling pressures were balanced. Even so, the market lacked the momentum to bring the coin to a higher value. In fact, the Bitcoin market was also declining for a short time, indicating an impending decline in the value of the Altcoin market.
Crucial levels to watch out for
Entry: $ 41.30
Profit Taken: $ 40.08
Stop Level: $ 41.66
Reward Risk: 3.43
As the DOT market rebounded from the aforementioned decline, it rose within an upward channel. Given the bearish breakout of the previous trend, the price could deviate from its current trend. At the time of going to press, the DOT market lacked the momentum that could lead to its short-term decline.
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