- Polkadot price strength being compromised by the intersection of two resistance levels.
- Rebound may be disguising the next leg of a bearish pattern.
- Osprey Funds broadens market for alternative cryptocurrency funds.
Polkadot price rebound at a crossroads, leaving market operators bewildered and frustrated as other cryptocurrencies sprint towards new highs. In the short term, the pattern presents the potential for a 20% rally from the current price if resistance levels are overpowered.
Polkadot price future to be influenced by a new generation of crypto investors
The new Osprey Polkadot Trust caters to sophisticated investors searching for a unique opportunity to access one of the largest layer one smart contract chains. The fund will be available to high-net-worth individuals with an investment minimum of $25,000, and it will list on the OTCQX market as soon as possible.
DOT began 2021 with an impressive rally, but from mid-February, the cryptocurrency has primarily moved sideways, except for a minor new high in the middle of April. The new high was matched with a bearish momentum divergence, as the Relative Strength Index (RSI) on various timeframes failed to print a new high. The ensuing correction traveled to the 50% retracement of the advance that began on December 23, 2020, resulting in a 40% decline.
From a macro perspective, a potential head-and-shoulders top is lurking on the 12-hour chart. To complete the pattern and to provide symmetry, DOT needs to shrug off the resistance at the crossroads of the double top trigger at $37.71 and the 100 twelve-hour simple moving average (SMA) at $36.93 to reach a similar high as the left shoulder around $42.36. It would equate to a 20% gain from the current price.
To further add symmetry, the right shoulder could take weeks to complete, as was the case with the left shoulder, bolstering the credibility of the pattern that ranks very high in terms of success and returns if adequately formed
DOT/USD 12-hour chart
The bearish thesis is voided if DOT rallies beyond the April high at $48.54. A surge beyond the high will collide with the meridian trend line beginning at the end of December 2020 and through the March low. The trend line currently rests at $58.25.
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.
Recommended Content
Editors’ Picks

Dogecoin Price Prediction: Profit-taking in DOGE hits monthly high, raising the risk of a crash
Dogecoin (DOGE) hovers below its key weekly level of $0.18 at the time of writing on Monday, signaling a waning of bullish momentum. DOGE is flashing early warning signs, as on-chain data indicates rising selling pressure among holders, with profit-taking having surged to a monthly high and dormant wallet activity rising.

SPX6900 Price Forecast: Bullish continuation eyes new all-time high
SPX6900 (SPX) meme coin edges higher by almost 2% at press time on Monday, following a 4.71% brilliant recovery the previous day. The renewed confidence of whales in the meme coin is suspected to have catalyzed the recovery, resulting in increased optimism in SPX derivatives.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH, and XRP stabilize near critical support levels
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are showing signs of stabilization around key support levels after a recent correction last week. BTC attempts to regain strength after closing below its critical support level, while ETH and XRP hover near technical thresholds that could determine the direction of their next moves.

Top Crypto Gainers Price Prediction: Jito, Bitcoin Cash, and Solana lead the market recovery
The broader cryptocurrency market ended the previous week with a minor recovery on Sunday. Holding gains from the prior day, Jito (JTO), Bitcoin Cash (BCH), and Solana (SOL) are the top performers over the last 24 hours. Despite a minor pullback on Monday, JTO, BCH, and SOL are close to breaking out critical levels, potentially extending gains this week.

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle
Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.