- Polkadot joins other cryptocurrencies to push for recovery following last week’s losses.
- DOT stepped above the four-hour 50 SMA, paving the way for gains eyeing $40.
- Resistance anticipated at $36, as highlighted by 200 and 100 SMA on the four-hour chart.
Polkadot recently bounced off support at $27 and is moving toward the coveted $40 level. The uptick in the price is not unique to DOT, because other cryptocurrencies have joined the party. Polkadot is doddering at $34 while technical levels gradually improve. The upswing will likely hit highs above $40 in the coming sessions.
Polkadot journey to all-time high begins
Polkadot has made a confirmed break above the 50 Simple Moving Average (SMA) on the four-hour chart. On the upside, the confluence formed by the 100 SMA and the 200 SMA near $36 limits price action at the time of writing. A break above this seller congestion zone would bolster DOT toward $40.
The uptrend has been validated by the Moving Average Convergence Divergence (MACD) indicator on the four-hour chart. This technical tool helps identify the general trend of the market and positions where to buy the dip and sell the top. A MACD line (blue) crossing above the signal line is a bullish signal observed on the four-hour chart.
DOT/USD four-hour chart
The four-hour SuperTrend indicator has presented a signal to long Polkadot on the four-hour chart. This tells traders to consider increasing stakes in DOT and speculate on a sustained uptrend in the near term. The SuperTrend indicator tells you to buy when it turns green and flips under the asset’s price.
DOT/USD four-hour chart
Looking at the other side of the fence
The confluence formed near $36 by the 100 SMA and the 200 SMA could hinder the price action toward $40. If Polkadot is rejected at this level, losses will be incurred under $30 and seek support at $27. Therefore, holding above the 50 SMA is key to sustaining the uptrend and keeping losses at bay.
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.