Polkadot Price At The Launchpad As Bulls Prepare To Takedown key Supply Barriers

Last Updated July 23rd 2021
2 Min Read
  • Polkadot price rebounds from the descending parallel channel’s lower edge support.
    • A break above the upper boundary and $12 resistance may bolster DOT to $14 and $18, respectively.

    Polkadot has resumed recovery alongside other altcoins in the market. Ethereum seems to be in the lead, with coins like Dogecoin and Solana performing incredibly well.

    According to live data by CoinGecko, DOT is up 9.4% in the last 24 hours and is trading at $11.7. The trading volume is still relatively high at $638 million but has corrected a little from the selloff volume on Tuesday. Polkadot holds the ninth position in the market boasts $11.8 billion in market capitalization.

    Polkadot Price Closes In A Massive Breakout

    The four-hour chart illustrates DOT recoiling from the support at $10.5, reinforced by the lower edge of the descending parallel channel. A break above the middle boundary has affirmed Polkadot’s recovery, at least to the channel’s upper edge.

    Meanwhile, a real break is required to ensure that Polkadot budges out of the technical pattern. On the upside, bulls must focus on the resistance at $12 to gain traction to higher levels. It is worth keeping in mind the 50 Simple Moving Average (SMA) resistance at around $14 and the ultimate hurdle below $20 at $18.

    DOT/USD four-hour chart

     DOT/USD four-hour chart 072121

    In addition to the growing bullish outlook, the Moving Average Convergence Divergence (MACD) will soon confirm a buy signal on the four-hour chart. Note that this trend-following tool calculates the momentum of Polkadot, thus sending bullish or bearish signals.

    As the 12-day exponential moving average (EMA) crossed above the 26-day EMA, the odds for a bullish breakout surged. However, the divergence must widen to affirm the bulls’ grip on the price and call more buyers into the market to take advantage of the potential rally toward $18.

    The exact four-hour timeframe shows the presence of a call to buy Polkadot by the TD Sequential Indicator. This signal took the form of a red nine candlestick, suggesting that buyers would be getting in control as the bearish force fades. Most of the buy signals have been confirmed in the recent past and managed to catapult DOT significantly upward.

    DOT/USD four-hour chart

    DOT/USD four-hour chart 072121

    What Will Invalidate Polkadot breakout to $18

    A daily close under $12 or within the confines of the descending parallel pattern will change the technical perspective in the market from the prevailing bullish to bearish. An increase in overhead pressure would push DOT back to $10.5 and perhaps jeopardize the support in favour of losses under $10.

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