The Polkadot price is on a stretch, posting double-digit gains not only against the USD but Ethereum and Bitcoin.
As of writing on Jan 21, the DOT/USD price is trading at around $17, adding six percent on the last day but 61 percent in the last week. Gains versus BTC is more pronounced than ETH’s because of the latter’s recent surge above $1.4k.
Technically, buyers are in the driving seat. Every low could be a loading opportunity for aggressive traders.
According to trackers, the average trading volumes of the last day are up 65 percent to $3.3 billion, or roughly 196 billion DOT, a number that keeps on rising as prices edge higher, posting new highs.
Polkadot (DOT) Price Overview
Bulls have so far failed in following through last week’s gains. In the daily chart, DOT/USD price remains in range with clearly defined boundaries. On the upside, DOT bulls are capped at around $19. Bears, on the other hand, have a buy wall at $14.
Therefore, a break above $20 will confirm the recent $5 price oscillation as an accumulation, opening DOT to even more gains to the upside, to new all-time highs.
Conversely, if there are losses below $14, DOT, considering the rapidity of the last few days, may crumble back to sub-10 in a correction.
Currently, regardless of the indecision, buyers are firmly in charge. This is because of prices ranging inside Jan 16 bullish bar. Accompanying this is low trading volumes pointing to relatively low participation.
Polkadot (DOT) Market Movers
The Polkadot project aims to build a hub that connects different platforms, allowing interoperability and free-flow between blockchains.
They have successfully achieved some of their objectives, although more work needs to be done for perfection.
As they trudge in their roadmap, Polkadot is now of the most staked network, on par with Cardano.
In December, Binance, one of the world’s largest crypto exchanges, said it would support the Polkadot ecosystem, allocating $10 million.
According to Reef Finance, this would open up even more opportunities and development in the interoperable chain ecosystem. The exchange has since launched DOTECO, a composite index perpetual contract.
(3/3) Last month, Binance announced its support for the Polkadot Ecosystem by allocating $10 million in funds. This will open new opportunities for improvement & innovation in the Polkadot Ecosystem. Good times ahead!
— Reef Finance (@ReefDeFi) January 20, 2021
Like Bitcoin and Ethereum, more investors are interested in Polkadot, sinking millions to support its burgeoning ecosystem. Some of them include Web3 Capital and Hypersphere.
More and more VCs are interested in Polkadot, especially, there are some funds that only specialize in investing in projects in the Polkadot ecosystem such as Web3 Capital, Hypersphere, KR1, Polychain Capital,…. pic.twitter.com/XyR719Kn5I
— Coin98 Analytics (@Coin98Analytics) January 21, 2021
The growth of DeFi and the need to create a more interconnected world would likely support interoperable blockchains. Polkadot, through Parachains, prominently features.
Polkadot Price Prediction
The DOT price has more than tripled in three weeks, surging from around $5 to spot rates.
With rising interest, the DOT/USD’s parabolic rise may continue as long as projects flow to the blockchain.
From the daily chart, prices are oscillating within a $5 zone, capped at $14 and $19, respectively. Notably, the DOT/USD price is also within Jan 16 trade range.
Therefore, from an Effort versus Results analysis, buyers are in charge. This is applicable as long as prices don’t fall below Jan 16 lows.
Therefore, the existing candlestick arrangement means there could be an opportunity for traders to buy the dips. Their immediate target is $20, the resistance level flashing with the 2.618 Fibonacci extension level of late Dec to early Jan 2021 trade range.
Losses below 1.618 Fibonacci extension with high trading volumes may invalidate the current uptrend, paving the way for sellers aiming for $10 in a retest.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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