Polkadot (DOT) price analysis: Breaks into new high on fresh bullish attack

Highlights of Polkadot 

  • DOT hit an all-time high at $49.19 in early Saturday trading
  • The highly anticipated Parachain rollout has been fuelling DOT’s recent price uptick

DOT hit an all-time high at $49.19 in early Saturday trading. Polkadot (DOT) surged above the $47.19 overhead resistance on April 17, signaling the resumption of the uptrend. A fresh bullish attack above $47.19 may suggest that buyers have returned. By and large, DOT/USD could continue to edge higher during the next trading session. The RSI is nosing upwards from the mid reading, while a present value of 64 indicates room for further advance.

Polkadot has a current market cap of $40.01 billion, with $2.53 billion in trade volume over the past 24 hours. As of press time, DOT was trading at $44.65, up 1.65% in the last 24 hours and 1.90% weekly. Now ranking 8th largest, Polkadot has made much progress since August 2020 when it made a grand entrant into the top 10 cryptocurrencies by market capitalization. At its present price, DOT has grown by 1582.76% from its Aug 20, 2020, all-time low of $2.69.

What is Polkadot? 

Polkadot
Polkadot

According to Polkadot Wiki, Polkadot is a heterogeneous multichain with shared security and interoperability. It further highlights that Polkadot can support several execution slots. And while Parachains have a dedicated slot for their chain, Parathreads share slots amongst a group. The rollout of Parachains and slot auctions for a full launch of the Polkadot protocol was expected by many to happen in Q1 2021. This highly anticipated event has been fuelling DOT’s recent price uptick.

Also Read 5 Takeaways From The 2021 Berkshire Hathaway Annual Meeting

DOT/USD daily chart: Bullish Polkadot

The DOT/USD pair broke out of its recent range after it breached the resistance at the previous high of $47.19. The pair subsequently marked a new all-time high although the bulls are working tooth and nail to sustain the higher levels. The range between $47.19 to $49.19 could still provide resistance for the DOT/USD within this session. 

Polkadot
Polkadot
DOT/USD daily chart. Source: TradingView

A proper break of this resistance range is crucial to confirm the resumption of the uptrend. After hitting the milestone at $49.19, the market may take a moment to digest the new record high while the RSI returns into the neutrality area suggesting possible consolidation. 

DOT may consolidate for a while to gather strength for a fresh attack at the resistance range between $47.19 to $49.19. If the buyers can propel the price above the all-time high at $49.19, the DOT/USD pair could rally above $50 to reach targets of $55 and $60.

On the other hand, if DOT price turns down its current level, the demand zone falling within the consolidation range between April 7 low of $37.46 and $47.19 may be of trend followers’ interest in likely support. If declines persist, DOT may be forced to retest the MA 50 support ($37.40) ahead of the ascending trendline support of $27.29 (Mar. 24 low).

  • Supply Levels: $60.00, $55.00, $50.00
  • Demand Levels: $40.00, $35.66, $31.14

Overall, expectations remain positive for the continuation of the uptrend, with potential targets being $55 and $60. A break below the MA 50 ($37.40) will invalidate this positive view.

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