When we talk about a new entry taking the market by storm, it sounds amazing but generally happens because of its unique approach and vision to capture the market. Polkadot has been a storm in the cryptocurrency world in the last year. It was precisely September 2020 when the price started to move up after its launch in the market.
This feat couldn’t have been possible without an active reason, and for this case, the reason is simple, Polkadot has approached cyberspace as a bridging tool that would allow interoperability among different cryptocurrencies, and since there are a lot of alternatives. One can use Polkadot’s decentralized ecosystem to exchange their holding assets into different sorts of cryptocurrencies. Polkadot has made it to the top ten cryptocurrencies and sits precisely at the 8th position with a market capitalization of $44.85 billion.
Polkadot Price Analysis
Polkadot cryptocurrency has reached a step closer to hitting a new all-time high. The price action in the last three months has been extremely positive, and closing above $50 could ignite a new spark in this digital asset. It seems like the 350% rally since July 2021 isn’t going to stop anytime soon.
Polkadot price rally would continue with the volatile candlestick charts till it manages to surpass the $50 level on a closing basis. It would be hard to predict the further price trend, but holding on to the $50 level will not be an easy feat for DOT cryptocurrency. A level that causes selling is one investors are always afraid of.
There could be three possibilities playing out at the level, first would be DOT facing resistance at the $50 level, consolidated, and then moving to a fresh high. The second would be Polkadot breaking the perceived resistance in a single day of buying, marking a breakout.
The third case is in case sellers get active at the higher level, we can witness a fall back to $38, which has emerged as swing support. Furthermore, it can fall towards its 200 DMA that comes around the $27.45 level as per our Polkadot price prediction.
RSI can be seen moving towards a highly positive movement by going above 70; it is currently at 68 levels. Despite the dip in transaction volumes, there seems to have had no impact on the buying sentiment of investors. In a world of multiple cryptocurrencies, here is one that offers relay chain features to increase interoperability.