Polkadot Market Analysis for 2nd January 2021

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Since the last six days, Polkadot [DOT] has risen 82% from $5.2 to $9.51, and was trading at $8.52 at the time of publishing. It was ranked sixth in CMC with a market capitalisation of $7.58 billion.

DOT 4-4our chart

Polkadot Price Analysis: 02 January

Source: DOT/USDT on TradingView

The 4-hour chart showed the remarkable progress achieved by DOT after breaking through $5.2, a level that DOT lost to bears in early December, regained in mid-December, and lost again.

The heavy bullish momentum for DOT saw a small pullback to re-test the $8 area as support before another step upward. This momentum hinted at the upside of DOT, and a long stance could be lucrative for traders.

Ractional

The Relative Strength Index corrected from the over-purchased area and displayed a value of 60 at the time of publishing, which was highly bullish. The study of shorter timeframes revealed that the $8.25 mark was a buffer for DOT’s $9.5 dip, and the safety and eventual ascent of hourly and lower timeframe charts showed that the bullish trend was increasing again.

A retest of the $8.5 support is likely, while the psychological $10 will be the first target for bulls and a cautious target for the next few days. Fibonacci’s 27 percent rise is $11.57 based on DOT’s shift from the $4.58 low swing to the $9.51 high swing.

Positions

Entry: $8.51

Stop-Loss: $7.9

Take-Profit: $10

Risk-to-Reward: 2.44

Conclusion

DOT saw a brief pullback and re-established a bullish trend on shorter timeframes while sustaining a stable upward momentum on longer timeframes. The post-breakout trade activity was high and the $8 level did not face major pressure. The $8.2 area has been defended by bulls, and near over the $8.5 mark suggests that a further upside is likely to be DOT.

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