Share:
  • Polkadot price has climbed 87% over the last 21 sessions, lifting the August return to 21.48%.
  • DOT claimed the strategically important 50-week simple moving average (SMA), currently at $18.40.
  • Daily Relative Strength Index (RSI) reached an overbought reading for the first time since the early-April high.

Polkadot price has delivered solid gains for investors, marching 87% while recording three consecutive positive weeks and a 21.48% gain for August. The impulsive rally has struck stiff resistance at a price range of $18.39 to $20.80, formed by lows printed in late May and in the first half of June. The overbought condition, stiff resistance and potential for a head-and-shoulders top on the daily RSI suggests some caution at the current DOT price levels.

Polkadot price confirms the rise of altcoins again

Polkadot price has engineered an impressive rally, and it has been supported by a surge in volume, with several days closing well above the 50-day average. The DOT rebound has also been reinforced by intra-day milestones, including a bullish Golden Cross pattern on the six-hour chart.  

The momentum generated by the Polkadot price rally activated a bullish Golden Cross pattern on the six-hour chart on August 4, when the 50 six-hour SMA crossed above the 200 six-hour SMA. The last Golden Cross that accompanied a major DOT bottom was the beginning of November 2020, before the steep rally of over 40% later in the month.

DOT/USD 6-hour chart

DOT/USD 6-hour chart

The explosive Polkadot price rally has reached a concerning deviation from the 50-day SMA in the short term. The 31% deviation indicates that DOT may be primed to retrace some of the recent gains to release price congestion. However, the correction could also occur over time and not price.

A second reason for some form of corrective process is the limited Polkadot price progress after it rallied into the price range of $18.39 to $20.80 on August 1. DOT has only managed to gain another 7% from the August 1 high of $20.50 to the August 7 high of $21.95. Moreover, the altcoin has closed five of the previous six sessions inside the range and is set to do so again today.

Ideally, the downside should be limited to the low of the range at $18.39 or the July 7 high of $17.88. Additional DOT weakness will not find support until the 50-day SMA at $15.55, leaving Polkadot price to confront the resistance associated with the price range again.

DOT/USD daily chart

DOT/USD daily chart

Suppose the DOT consolidation over the last eight days is the limit of the correction. In that case, it should not discover resistance until the 38.2% Fibonacci retracement of the entire correction at $25.78 and then the 200-day SMA at $27.20, representing a 32% gain from the current Polkadot price.

The catalysts are in place for a DOT correction, an overbought reading on the daily RSI, a credible resistance price range, and a notable deviation from the 50-day SMA. Nevertheless, the 87% gain over the last 21 sessions is one of the confirmations that altcoins have re-established a presence in the cryptocurrency complex, and Polkadot price should still tag higher prices in the weeks ahead.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

TRON price rallies to yearly high following burn of over $12.6 million tokens

TRON price rallies to yearly high following burn of over $12.6 million tokens

TRON fee revenue reached an all-time high of $1.758 million on February 20. TRON network burned over 12.62 million tokens on Tuesday, likely catalyzing the altcoin’s gains. TRON price hit a 2024 peak of $0.14048 on Wednesday and the altcoin is likely to rally higher. 

More TRON News

Ethereum price briefly touches $3,000 for third time in a week

Ethereum price briefly touches $3,000 for third time in a week

Ethereum price crossed $3,000 for the third time this week, resulting in euphoria among crypto market participants. On-chain intelligence firm Santiment noted that traders bought Ethereum at the local top, above $3,000, out of the Fear Of Missing Out (FOMO).

More Ethereum News

XRP price suffers pullback with latest update in SEC v. Ripple lawsuit

XRP price suffers pullback with latest update in SEC v. Ripple lawsuit

XRP price dropped below $0.55 on Thursday as both Ripple and SEC work on remedy-related briefs. March 13 is the next key deadline for the SEC v. Ripple lawsuit. The court will determine penalties for Ripple’s institutional sales of XRP by the April 29 deadline. 

More Ripple News

Polygon inflation ends, MATIC price primed for explosive growth?

Polygon inflation ends, MATIC price primed for explosive growth?

Polygon’s Foundation contract shelled out the last remaining 273 million MATIC tokens on Wednesday, marking the end of the vesting period. This development means that there are no more tokens to unlock i.,e all of the MATIC tokens ever minted are now in circulation.

More Polygon News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis

BTC

ETH

XRP