Polkadot Price Movement Analysis for 11th March, 2021

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Polkadot has not traded as well as other altcoins on the exchange in the past week. However, the token has managed to retain its spot in the CoinMarketCap rankings. Maintaining a market cap of more than $30 billion, the next few weeks should be incredibly bullish for DOT, with the long-term price layout of the altcoin showing very promising signs.

Polkadot 12-hour chart

The bullish breakout that had taken DOT all the way to $43 in mid-February seemed to be taking shape again in the form of another solid ascending triangle, at press time. In reality, the price of the altcoin has already checked the upper resistance of the trend three times since the end of February.

There was also a positive convergence between the 20-Exponential Moving Average and the 21-Simple Moving Average, which sparked the rally at the beginning of last month. For DOT, the trading rate climbed to an all-time high on the map, with the same likelihood of a potential sell-off. Collectively, though, the movement appeared to be leaning towards the market bulls.

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A similar breakout would comfortably cause DOT to ascend to $50-$60 during the initial rally, which could be later transcended, before securing a foothold above $70.

 

Market Rationale

Source: DOT/USD on Trading View

Market indices also showed a complete reset. The MACD has executed a bullish crossover over the last 24 hours, reflecting the same picture as the previous run, at press time.

As far as the Relative Strength Index or RSI is concerned, there seemed to be a dispute that selling pressure might take short-term priority over the next few days, but the rebound from the neutral point could turn back to the buyer’s side.

At the end of the day, the Awesome Oscillator or AO also showed a prime rebound in terms of bullish traction, despite handling bearish sentiments over the past few weeks.

 

Verdict

Although the market structure appears bullish, it would be important to validate this prior to entering into a trade. If DOT breaks its ascending triangle during the next week, a place will be opened with respect to the awareness of the next trading sessions.

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