The Polkadot price continues to defy expectation, steady despite the increasing headwinds.
As of writing on Mar 11, the DOT coin, the native currency of the interoperable platform, is changing hands at $36. The coin may be down six percent on the last day but remarkably—and impressively high, firm on the uptrend, adding 56 percent week to date.
The DOT/USD price is in range mode, within a broader $20 zone with clear support and resistance at $20 and $40, respectively.
Overly, the path of least resistance remains being northwards. On the lower end, a retracement-if fundamentals guide– may be another opportunity for traders to add to their longs.
Already, there is apprehension in the market. Average trading volumes on the last day are down 20 percent. However, the DOT coin is liquid.
As of Mar 11, traders have successfully changed $2.1 billion worth of the coin, pushing its valuation in the top-5 by market cap.
Polkadot Price Overview
The DOT/USD price technically bullish.
A combination of favorable candlestick arrangements coupled with solid fundamentals gives the coin an advantage over sellers.
Presently, the DOT price is range bound, trending inside a rising triangle. On the upside, $40—or Feb 2021 high, is a sell wall. A break above the immediate resistance trend line may catalyze another wave to the upside.
On the flip side, sellers could control if DOT prices slide below the minor trend line, below the bull flag. In that eventuality, the DOT price may fall back to $20 in a correction.
Nonetheless, it would provide an opportunity for traders and investors aiming to double-down on the Polkadot product considering what it seeks to achieve.
Polkadot Market Movers
In a blockchain world of isolated ecosystems, Polkadot wants to bring them together for the common good: Advance the use of blockchain and DLT technologies.
DeFi is the hot topic in crypto circles, several projects—even if native to Polkadot, several projects are strategically connecting to Ethereum. Balancer, towards that end, is now available in Polkadot courtesy of Moonbeam, a Polkadot Parachain. Besides Balancer, Moonbeam is also looking to link the Polkadot ecosystem with Sushiswap, IDEX, and Linear Finance.
If anything, Parachains are core to Polkadot:
Parachains are the last piece of core functionality to be delivered as outlined in the whitepaper, and will allow Polkadot to realize its scalable multi-chain architecture. Parachains will launch via on-chain governance after a period of testing, optimization and auditing.
— Polkadot (@Polkadot) February 22, 2021
As they build, Parity Technologies is developing Statemint, the first “common good” parachains for the deployment of assets, including NFTs:
Parity Technologies is developing a generic assets parachain called Statemint as one of the first common-good chains on @Polkadot & @kusamanetwork. Providing functionality for deploying assets — from NFTs to stablecoins and Central Bank Digital Currencies.https://t.co/EZcGnwPjhw
— Parity Technologies (@ParityTech) March 9, 2021
Its oracle system has the support of reputable providers, including Chainlink:
.@polkadot's oracle, the gate to a reliable database, is supported by many reputable projects like @Kylin_Network @option_room @chainlink, expanding solutions on removing #DeFi & oracle pain points! 🚀
Potentials will continue to grow w upcoming TGEs & future listed tokens! 🔥 pic.twitter.com/rLZOsm8rpr
— Kyros Ventures (@KyrosVentures) March 9, 2021
Polkadot Price Prediction
The DOT/USD price is trading inside a narrow trade range within an ascending triangle.
The 20-day moving average is the primary support for buyers in the immediate term. On the other end, $40, or Feb 2021 high, is a sell wall. Therefore, a break above the triangle, to the upside, may lift the DOT price back to $40 and beyond, buoying bulls and project investors.
Conversely, if there is an overvaluation and the DOT/USD price contracts below the 20-day moving average, the odds of bears driving the coin’s price to $20 is elevated. This buy-wall flashes with the 61.8 percent Fibonacci retracement level of the January-February 2021 trade range.
Considering this consolidation, risk-averse traders may wait until a clear trend develops—in any direction.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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