Polkadot Price Analysis: DOT takes a hiatus ahead of gigantic rally to $60
- Polkadot swings massively upward, trading a new record high of $47.
- A correction may come into play, but support at $40 seems strong enough to stop the declines.
- The MACD on the four-hour chart has a bullish impulse, suggesting that the uptrend may continue toward $60.
Polkadot, alongside few other selected digital assets, posted tremendous gains during the long weekend session. The token finally made a real break past $40. Moreover, a new record high was achieved at $47. Other cryptocurrencies which posted incredible gains include Ripple and Stellar.
Polkadot stalls at the record high
DOT exchanges hands at $44.6 at the time of writing. The bullish momentum has lost steam on hitting the barrier at $47. Meanwhile, buyers are looking forward to gains past $50 and toward $60.
On the downside, Polkadot is likely to correct to the support at $40 before continuing with the uptrend. The Relative Strength Index (RSI) on the 12-hour chart clearly shows that the bearish grip is becoming toughening.
DOT/USD 12-hour chart
The RSI has also confirmed the bearish outlook on the four-hour chart. The trend strength Indicator has been rejected from the overbought region and is sliding toward the midline. Similarly, the Moving Average Convergence Divergence (MACD) indicator has reinforced the short-term bearish outlook. The MACD line (blue) recently crossed beneath the signal line, suggesting the selling pressure is bound to rise.
DOT/USD four-hour chart
Looking at the other side of the fence
The 12-hour chart shows that the trend is bullish in the long term. For example, the MACD line (blue) has managed to sustain the position above the signal line. Besides, the indicator is soaring north above the zero line.
Polkadot will also resume the uptrend if immediate support $44 holds; market stability would prove to investors that correction is unlikely to come into the picture and that DOT is more inclined to surge toward $60.