Connect with us

Price Analysis

Polkadot Retraces, DOT/USDT Bulls Rejected at $30

Published

on

Whats next for Polkadot COVER

Polkadot is the most valuable blockchain project promising interoperability—its main value proposition.

The project’s ecosystem continues to develop as other blockchains bridge with its Relay Chain.

For what is on the table, Polkadot’s potential has been described as “mind-blowing”— a protocol that can genuinely stand and clip a big part of Ethereum’s market share.

Polkadot Market Performance and Price Status

Even so, Polkadot’s rise to glory can be traced to late last year when there were changes to the coin’s tokenomics.

This change, in combination with the Polkadot’s remarkable architecture and dependence on Substrate—another solution built from scratch by the Parity team—is what gives it an edge.

At the time of writing, Polkadot is gradually carving out market share. Markedly, several projects are now launching straight from the protocol angling to leverage its unparalleled scalability and EVM compatibility.

Beyond what the project has to offer, DOT’s performance has been nothing short of impressive.

At the time of writing, prices could be recoiling—even peaking after sharp gains from July 2021. Even so, the rise to prominence is revitalizing bulls, a perfect ingredient needed to drive prices to new H2 2021 highs.

Polkadot Daily Chart for August 24

Presently, DOT is flat on the last trading day versus the greenback. However, it is in green in the previous week of trading.

Technically, there are hints of weakness, but buyers are adamant. DOT crypto prices are recoiling from the 50 percent Fibonacci retracement level of the May to July 2021 trade range—the period of market-wide contraction of prices.

All the same, DOT prices are still inside the August 19 to 20 trade range, a net positive for buyers from an Effort-versus-Results perspective.

A close above $30 could easily ignite the next wave of demand in a lift-off to $45.

$30 is a DOT “Pressure Level”

Another trader on Twitter has further highlighted the significance of $30.

While the analyst remains bullish, expecting another impulsive wave to blast past immediate liquidation levels, he acknowledges the pressure of $30.

This level flashes with the 50 percent Fibonacci retracement level of the Q2 2021 trade range.

Its strength shows by the failure of bulls to break above despite sharp gains over the weekend.

With lower lows from the upper BB, there are indicators of weakness, a concern for hopeful Polkadot bulls.

Technically, a close above $30 opens up more opportunities for DOT bulls. On the flip side, unexpected contractions below the 20-day moving average and $23 could dash bullish calls.

It is the same observation by yet another trader on Trading View.

Based on price action in the 3D chart, the analyst says $30 is a strong resistance level that’s worthy for bulls to overcome before predicting viable targets.

Polkadot--$30

Polkadot Looks “Extremely Good in the Weekly Chart”

The race to $45 is a possibility, especially if the weekly chart leads. On Twitter, one trader observes that the candlestick arrangement looks good, an endorsement of bulls.

Notably, DOT prices are inching higher with decent trading volumes. They are now trending above a critical resistance line as aforementioned.

If Polkadot bulls build on events of the past three weeks, there could be a high probability of further gains back to all-time highs.

This could be a real feat considering the depth of Q2 2021 losses and bounce from around the 78.6 percent Fibonacci retracement of the H1 2021 trade range.

Charts courtesy of Trading View

Disclosure: Opinion is that of the author. Do your own research.

cryptotelegram-telegram-banner

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!

Trending