Polkadot nurtures a 15% breakout while this crucial barrier must come down

  • Polkadot rebounds from support at $8.0 as bulls target gains to $10.
  • Trading volume is building according to the data provided by Santiment; upward price action likely to continue.

Polkadot has embarked on another recovery mission after embracing $8 during the recent widespread declines. As the price inches closer to the ultimate breakout point, DOT bulls are getting ready for a massive liftoff, likely to test $10.

Polkadot prepares for the uplift to $10

DOT/USD is doddering at $8.7 amid a renewed bullish momentum. On the downside, the ascending parallel channel’s middle boundary is holding the token in position. On the upside, Polkadot is making the final approach at the upper resistance. A break above the crucial resistance (channel’s upper boundary) would elevate Polkadot toward the coveted $10.

DOT/USD 1-hour chart

DOT/USD 1-hour chart

The 4-hour chart highlights that the prevailing trend favors the bulls. The Relative Strength Index has broken above the bearish divergence, which explains the intraday spike.

A bearish divergence comes into the picture when the price forms a series of higher lows while the RSI drops, creating a series of lower highs. It represents decreasing volume but once broken, buyers begin to regain control over the price, as observed on the chart.

DOT/USD 1-hour chart

DOT/USD 4-hour chart

Santiment, a leading on-chain analysis platform, shows that Polkadot’s daily trading volume is starting to rise again after topping out at $3.5 billion on January 4. The volume dropped significantly over the last weekend and early this week to $1.4 billion.

However, the on-chain metric confirms that DOT’s volume is recovering but holding at $1.9 billion at writing. As the volume rises, the price is likely to follow, similar to the token’s past performance.

DOT/USD 4-hour chart

Polkadot daily volume chart

It is worth mentioning that the bullish outlook will be jeopardized if DOT/USD fails to break above the channel’s upper boundary. The price must also settle above $9 to sustain the uptrend eyeing $10. On the downside, a correction may come into the picture as overhead pressure intensifies, thus revisiting the support at $8.5 and $8.0, respectively.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin must reclaim $40,000 or risk plummeting to $20,000, curtailing crypto bull run

Cryptocurrencies in the market seem to be resuming their uptrends, following significant losses in the previous weeks. Uncertainty in the market was brought about by Bitcoin’s swings to $40,000 and back to $34,000.

More Bitcoin News

Chinese investors are growingly concerned that Polkadot fails amid EOS-like fraudulent activity

Polkadot is known as the Ethereum Killer and although started trading in 2020, quickly reached a market capitalization of $4 billion. This blockchain protocol offers a high throughput and low-cost transactions, but what does make DOT different than any of the other Ethereum competitors like EOS?

More Crypto News

Binance Coin Price Forecast: BNB makes new all-time highs, bulls target $60 before ultimate upswing to $100

BNB price was able to hit a new all-time high at $46.88 on January 18 after a long grind that started in March 2020. The digital asset has been trading inside a healthy and robust uptrend and could rise even higher.

More Binance Coin News

Ethereum price looks ready for lift-off, targeting new all-time high of $1,700

Ethereum outperformed Bitcoin this past weekend and remains trading above $1,200. The digital asset seems to be contained inside an ascending triangle pattern on the 4-hour chart and could see a breakout in the near term. 

More Ethereum News


Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast