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Polkadot Price Volumes Shrinks 17%, will DOT/USD Correct from $20?

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The Polkadot price is and continues to remain one of the top performers. Although the DOT price is down the market cap leader-board, the uptrend is firm. Buyers are in charge of proceedings.

As of Feb 15, the DOT price is back to fourth, flipping Cardano and dropping eight percent on the last day. Week-to-date, the DOT is up 33 percent versus the greenback, marginally up against Bitcoin, and a massive 21 percent against Ethereum.

The trajectory taken by DOT is standard across the crypto world. After the past two months’ parabolic gains, most coins are cooling off, providing savvy traders opportunities to capture the correction and add to their longs.

Participation-wise, average trading volumes are shrinking. However, it is not enough to deflate the current momentum since DOT is still in the top-5, and buyers are in the driving seat. The last day’s trading volumes stood at $2.3 billion, falling 17 percent.

Polkadot (DOT) Price Overview

The uptrend is firm from the daily chart, and traders are banking on more upswings as DOT/USD discovers fair price.

Notably, the expansion has been near perpendicular. By trading within a bullish breakout pattern, the DOT price is trending around all-time highs. With upbeat traders and candlestick arrangement favorable for bulls, the DOT price might print new 2021 highs in the coming days.

In the immediate term, buyers are targeting $30. It is elusive but feasible considering the pace of the uptrend and the rapidity of the recent breakouts.

For bears, the reaction at Feb 12 lows and the middle BB could determine whether the DOT price is cooling off and ready for lower lows in a retest.

On the flip side, sharp gains above $30, confirming Feb 12, opens the door for new 2021 highs. Further increases could lead to another flipping, displacing XRP from third.

Polkadot (DOT) Market Movers

Polkadot is an interoperable blockchain-agnostic network whose side chains can plug into other public DLTs. The result is the interconnection of previously siloed platforms translating to better efficiency.

Binance is one of the big supporters of Polkadot, previously announcing a $10 million grant to fund projects building on this web-4 platform.

As a result, more projects are flowing to the scalable web-4 network, taking advantage of its interconnection:

Consequently, traders are bullish on DOT. There is widespread expectation for Coinbase to list the coin. Also, with the high Gas fees in Ethereum and the likelihood of Eth2 delaying, Polkadot is a choice platform for development.

Polkadot (DOT) Price Prediction

Polkadot Price Volumes Shrinks 17%, will DOT/USD Correct from $20?

The Polkadot price remains bullish. However, in the immediate term, there is a bit of over-valuation.

Note that Feb 14’s bear bar is above the upper BB. This suggests a possible correction, back towards Feb 12 lows or even worse.

Nonetheless, while this may be a reality, the demand for DOT in lower time frames is high.

Therefore, unless there is a breach of $30, confirming the bull bar of Feb 12, sellers may flow this week and push the DOT back below the middle BB towards $20.

Conversely, a comprehensive close above $30 with high trading volumes—ideally above Jan 16 (Binance’s data), will be enough to propel DOT prices to a new 2021 high of $45.

It coincides with the 2.618 Fibonacci extension level anchored on the Dec 2020 and Jan 2021 trade range.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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