Polkadot Price Movement Analysis for 30th April, 2021

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Polkadot has been able to sustain a relatively high price point since February 2021 without succumbing to significant price corrections. After surging in January, DOT settled around the $35 mark in February, with the alt seeing range-bound market action since. Given the heavy bullish traction in the DOT market, the coin could be well on its way to the upper end of this range by the end of the week.

At the time of publication, DOT was priced at $36 following a 20% price increase in the previous week. DOT has a market capitalisation of more than $33 billion, rendering it the market’s eighth-largest cryptocurrency.

Polkadot 1-day chart

On the daily chart of DOT, Polkadot’s price activity was clearly range-bound. Since February, the coin has been able to keep its price between its immediate resistance level of $46 and its support level of $32. Surprisingly, the coin has only breached its immediate support three times and moved into the second support at $26. And in both of these cases, the recovery has been relatively fast.

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With the market now seeing increased bullish traction, DOT can quickly head towards its immediate resistance, and traders will profit from long positions and take profit around the $46-price mark.

Rationale 

The technical indicators for DOT indicated that the cryptocurrency will have a fairly bullish week. The MACD indicator has just completed a bullish crossing, with the MACD line eventually passing across the signal line. From the neutral zone, the RSI was also moving north.

Important levels to watch out for 

Entry: $38.5

Take profit: $44.5

Stop loss: $32.8

Risk/Reward ratio: 1.1

Conclusion 

DOT’s market behaviour seemed to be very bullish in the coming week. This which cause it to return to the price level near its immediate resistance level, which is about $44 – $46. Traders will profit from long positions in such a situation. If the bears re-enter the market, DOT can still depend on the $32-price level to keep the price stable.

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