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Polkadot’s growth has been phenomenal in 2021. With a low-single-digit start to the year, the asset’s valuation has risen to $39.38 and is projected to increase higher. Polkadot, which had a market capitalisation of $35.93 billion at the time of publishing, was on a bullish course.
Polkadot four-hour chart
Polkadot’s above map was representative of the major jumps it has seen in the crypto industry. While other alts rallied as well, Polkadot’s solid fundamentals propelled it to new heights.
Because of the strong trend, DOT’s price can rise to the resistance level of $41.39.
The Bollinger Bands began to diverge, indicating that the market had already become erratic. The price has pushed through the Bollinger lines, whilst the signal line has stayed below the candlesticks. Whereas the 50 moving average was still intertwined with the signal line under the candlesticks, signalling a market uptrend.
However, the increased uncertainty has moved the digital commodity dangerously close to overbought territory. The RSI has been illustrating this development, and although the asset has not yet broken through the overbought zone, it was close at 64.
Meanwhile, the MACD predictor showed that market sentiment was bullish. The growing distance between the MACD line and the signal line, on the other hand, could mean a price swing making its way to the DOT market.
Take Profit: $41.20
Stop level: $38.98
Risk to Reward: 2.69
The current Polkadot chart shows a bullish drive making its way through the market; however, an excessively bullish market can reverse the pattern. The bullishness may support the price for the time being, but it may lead to a major correction.