Polkadot Price Analysis: DOT is drawing closer to a 31% upswing, eying $50

Polkadot Price Analysis
  • Polkadot is trading at the apex of a symmetrical triangle pattern ahead of the anticipated liftoff to 50.
  • The resistance at $40 remains the biggest hindrance to the bullish outlook.

Polkadot is among the few cryptoassets set to begin the week in the green. Bitcoin surprised many by making a real break above $60,000 over the weekend. DOT is most likely following in its footsteps to achieve another record high.

Meanwhile, DOT is trading at the apex of a symmetrical triangle. This pattern highlights a period of consolidation in addition to a potential breakout or breakdown.

The symmetrical triangle is formed by two trendlines whereby one connects a series of higher lows and a series of higher lows. A breakout will occur as soon as the price slices through the upper trendline. The move to the north is usually drastic and confirmed by a sudden increase in trading volume. Triangle breakouts have exact targets measure from the pattern’s highest to lowest points.

Polkadot is very close to breaking above the upper trendline, where it will launch 31% higher to a new all-time high. The anticipated upswing will be reinforced if the MACD sustains the cross above the signal line. Moreover, the indicator should stay within the positive region to secure the bullish impulse.

DOT/USD 4-hour chart

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DOT/USD price chart DOT/USD price chart by Tradingview

Note that the bullish outlook will fail to hold if Polkadot upside is continually limited under the upper trendline, and by association, the seller congestion at $40. On the downside, the 50 Simple Moving Average is in line to offer support. Massive losses eyeing levels under $25 will come into the picture in the symmetrical triangle breakdown.

The post Polkadot Price Analysis: DOT is drawing closer to a 31% upswing, eying $50 appeared first on Coingape.

Publication date: 
03/15/2021 - 05:31
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.