Polkadot jumped 4% on its chart in the past 24 hours. Over the past week, the DOT has remained fairly bullish as it recorded a 7% increase in its value. Price momentum has held to bullish for the time being. After breaking above the rigid $8 resistance, the bulls regained strength.
The technical outlook also indicated positive price action for DOT. The buying strength of the altcoin also noted an increase, which contributed to the price increase. If the demand remains constant in the market, it would be easy for Polkadot to break through its next resistance bar.
As Bitcoin continued to move north and traded above the $23,000 mark, altcoins were positively affected by this price move. Currently, the bulls are trying to maintain the recovery mode that DOT had displayed on its chart. The global cryptocurrency market capitalization today is $1.14 trillion, with a 0.6% negative change in the last 24 hours.
Polkadot Price Analysis: Four-Hour Chart
DOT was trading at $8.20 at the time of writing. The altcoin managed to break above its tough $8 resistance mark. This reinforced the bullish force in the market. Demand for the coin also contributed to the recovery.
The overhead resistance for the altcoin was $9 and in case the DOT manages to trade above this level, it may soon enter the double-digit price zone. A drop from the current price level, however, will land DOT at $7.20 first and then at $6.87. The amount of Polkadot traded in the previous session has fallen slightly, indicating that selling pressure may be trying to make an entry on the chart.
Technical analysis
The altcoin was quite bullish in the short time frame. It recently traded in the overbought zone as the coin staged a rally over the past 7 days. The purchasing force remained positive and also took precedence over the sales force.
The Relative Strength Index showed a slight decline in buying pressure, although buying pressure remains well above selling pressure at press time. Polkadot was above the 20-SMA line, a sign that the buyers were driving the altcoin’s price momentum. The DOT was also above the 50-SMA and the 200-SMA, a representation of increased demand and bullish strength in the market.
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The DOT technical outlook reflected increased demand on the four-hour chart. Moving Average Convergence Divergence reads price momentum and possible change in price action. The MACD underwent a bullish cross and resulted in green histograms above the half line indicating an uptrend and a buy signal.
The Directional Movement Index reads the direction and movement of prices on the chart. The DMI was positive because the +DI line was above the -DI line. The average Directional Index (red) was above the 40 mark, indicating that the current price action was strong.
Related Reading | Polkadot (DOT) Grinds 15% More on Sustained Buys
Featured image from Invezz, chart from TradingView.com