Polkadot Price Forecast: DOT Bulls Triumph To $24 But $30 Is The Rendezvous

Last Updated August 16th 2021
2 Min Read
  • Polkadot price starts gaining traction to $30 after the 100-day SMA secured robust support above $20.
  • Bulls have the upper hand according to the short-term technical picture, accentuated by the MACD.

Polkadot, alongside other altcoins this previous weekend, averted calls for correction as bulls braced for another uptick. DOT bounced off support at $20, a level that would have been the weakest link in the uptrend initiated last month at $10.5.

Investors continue to join the market amid rising expectations for the next breakout to $30. As the price settled above the 100-day Simple Moving Average (SMA), the probability for a sustained recovery increased. Thus, DOT lifted above $24 while bulls gaze at $30.

Polkadot Steadies For An Ultimate Swing To $30

The next rendezvous position for the bulls is at the 200-day SMA and would be easily achievable as long as the primary barrier at $25 is pulled into the rearview. Keep in mind the Moving Average Convergence Divergence (MACD) is bullish in the daily timeframe. A signal to buy Polkadot has been sustained since July 22. With the MACD lifting above the mean line, it is apparent that the slightest resistance path is upward.

DOT/USD Daily Chart

 DOT/USD Daily Chart 081621

The same daily chart reveals an incoming bullish formation, expected in less than a week. The bullish signal will occur as the 50 SMA crossed above the 100 SMA. Although this is not a golden cross, it is often considered an uptrend confirmation.

Similarly, the bulls’ grip on the DOT has been emphasized by the Relative Strength Index’s (RSI) extended movement upward. Note that in a bull market, the RSI tends to stay overbought longer. Thus, there may be no cause for alarm with the RSI staying in the overbought region, at least for now.

 A buy signal presented by the SuperTrend indicator just before August cements the bullish outlook. This call to buy DOT came into the picture when this key technical tool closed the day below the price and changed red to green. Traders often use this indicator to ascertain entry and exit positions, especially in trending markets.

DOT/USD Daily Chart

DOT/USD Daily Chart 081621

A break above $25 would be crucial in keeping the uptrend intact. At the same time, if higher support is established, perhaps at $24, market stability will give bulls enough time to gather the strength needed to support gains to $27 and $30, respectively.

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