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Polkadot

Polkadot Kusama bridge could go live by end of 2021, traders bullish on DOT

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  • Development of the Polkadot-Kusama bridge is currently underway; the DOT team predicts launch by the end of 2021.
  • Rococo testnet has turned into a community-maintained parachain testbed in the latest update. 
  • Analysts are more bullish on KSM tokens than DOT, as bridge development nears completion.
  • Polkadot’s social media activity exploded after the parachain launch announcement.

Polkadot is nearing its parachain auctions in November 2021. The post-auction phase of Kusama led to a drop in the price of KSM tokens. If the same occurred to DOT, the price of the altcoin would plunge in December 2021. 

Polkadot network goes through major upgrades; analysts predict massive rally in Q4 2021

The team behind the development of Polkadot has announced that the Polkadot-Kusama bridge, for interoperability of assets on both blockchains, will go live by the end of 2021. 

Pseudonymous cryptocurrency analyst @DonnieBigBags has predicted that the importance of the KSM token would go up. Following the launch of the bridge, all native KSM assets will be interchangeable with assets on the DOT blockchain, boosting the utility of the Kusama network’s tokens. 

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Polkadot price to return to $40 if near-term support holds

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  • Polkadot price lost nearly 30% of its value during the Saturday flash crash.
  • A strong recovery indicates Polkdaot may be positioned for another leg higher.
  • Downside risks remain, and risks must be monitored.

Polkadot price has substantially recovered since hitting a low of $23.95. A return above the $30 level gives buyers and long-term hodlers significant psychological support that Polkadot may, again, move higher.

Polkadot price must close above $32 before it can test $40

Polkadot price faces near-term resistance against the 38.2% Fibonacci retracement at $31.08 and the Tenkan-Sen at $31.66. It will need to close above both levels to prevent any near-term continuation of selling. Ideally, there would be enough momentum to close above the Kijun-Sen at $36, but that may not be possible.

After Saturday’s flash crash, an unfortunate event is the conversion of the Relative Strength Index from bull market conditions to bear market conditions. This does not mean or imply that Polkadot is entering into a bear market, but that momentum has dwindled enough to generate some warnings.

Despite the conversion to bear market conditions in the Relative Strength Index, there are some bullish signs. First, there is a regular bullish divergence between the candlestick chart and the Composite Index – hinting at a bullish reversal. Additionally, the Optex Bands oscillator is moving above and out of the extreme oversold levels it has been in.

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DOT/USDT Daily Ichimoku Chart

Considering the present position of the Relative Strength Index, Composite Index, and Optex Bands, a breakout above $32 would likely have enough momentum to see Polkadot price test the Senkou Span B at $40 as resistance.

Failure to close above the Tenkan-Sen could see Polkadot return to the 50% Fibonacci retracement at $26.

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Polkadot price analysis: DOT to retest support at $27.2, as price steps down to $28.7

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  • Polkadot price analysis is bearish today.
  • Resistance for DOT/USD is present at $33.6.
  • Support for DOT/USD is present at $27.2.

The Polkadot price analysis is bearish today as a further decrease in price has been observed. The price has been devalued till $28.7 today as well after encountering extreme loss yesterday when the coin crashed from $33.7 down to $29.3 while swinging as low as $27 at a time. The DOT/USD has been on a downtrend since 5th November, and today it completed a month of being on the decline, setting a lower low for the last two months. Currently, the price had come below the consolidation level of the month of September before it started its journey towards the higher side.

DOT/USD 1-day price chart: Downside continues as market pressure still persists

The one-day Polkadot price analysis is showing a bearish trend for today as the price has been depreciated today as well. The bearish momentum has been continuing over the past few weeks, and today, the trend is the same. The price has been lowered to the $28.7 level after the latest drop. The moving average indicator (MA) is present at the $34.8 mark above the price level.

Polkadot price analysis: DOT to retest support at $27.2, as price steps down to $28.7 1

The Relative Strength Index (RSI) is present at index 28 in the oversold region, indicating unfavorable circumstances for DOT. The volatility has been on the higher side for a long time, and the situation is the same volatility-wise. The upper Bollinger band value is $45, whereas the lower Bollinger band value is $29, and the price is trading below the lower value. The Bollinger bands are maintaining an average of $37.

Polkadot price analysis: Recent developments and further technical indications

Yesterday’s drop in price has been quite damaging to the market value of DOT. The current price is still below the moving average, whose value is present at the $29 mark on the 4-hour chart. The price is going up once again as a bullish trend has been observed during the last four hours. Although the price recovered earlier for a brief period yesterday but decreased again, and the most recent trend is going in favor of bulls.

Polkadot price analysis: DOT to retest support at $27.2, as price steps down to $28.7 2
DOT/USD 4-hours price chart. Source: TradingView

The Bollinger bands indicator average has been maintained at $32, whereas the upper Bollinger band is showing a $39 value, and the lower band is showing a $25 value, representing high volatility range for DOT. The RSI curve is floating just at the borderline of the neutral and oversold zone at index 30.8, heading slightly up due to the last green candlestick, but still, the pressure seems to be there.

The price has been trading towards the downward direction if we see the DOT’S progress for the past month. This is why the technical indicators chart for DOT/USD is indicating a bearish trend, with only one indicator on buying position, eight indicators on neutral position, and 16 indicators on selling position.

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Polkadot price analysis conclusion

The Polkadot price analysis report shows a downward movement in price has been observed during the last 24-hours, which is a continuation of the bearish trend. The price has dropped down to the $28.7 level because of the constant downtrend that has been following for the past few days and took a steep plunge yesterday. The price might go lower in the coming hours as the last candlestick on the four hours price chart might also turn red, as the momentum is not there for bulls, and the RSI is indicating the same.

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Polkadot Price Analysis: DOT finds support at $24.35 after heavy selloff overnight

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  • Polkadot price analysis is bullish today.
  • DOT/USD dropped over 35 percent since the last high.
  • Support was found at $24.35 this morning.

Polkadot price analysis is bullish today as we expect recovery to follow after a quick reaction higher from the newly found swing low. Therefore, we expect DOT/USD to move higher later today and look to retest previous support as resistance at $33.

Polkadot Price Analysis: DOT finds support at $24.35 after heavy selloff overnight 1
Cryptocurrency heat map. Source: Coin360

The crypto market overall saw strong selling pressure over the last 24 hours. The market leader, Bitcoin, declined by 16.54 percent, while Ethereum 13.81 percent. Meanwhile, the rest of the top altcoins follow with an even bigger loss.

Polkadot price movement in the last 24 hours: Polkadot continues to decline, spikes below $25

DOT/USD traded in a range of $24.72 – $36.49, indicating strong volatility over the last 24 hours. Trading volume has spiked by 207 percent, totaling $2.83 billion. Meanwhile, the total market cap trades around $27.83 billion, ranking the coin in 9th place overall.

DOT/USD 4-hour chart: DOT starts to react higher

On the 4-hour chart, we can see the Polkadot price action finding strong support at $24.35 this morning, likely leading to swift recovery over the next 24 hours.

Polkadot Price Analysis: DOT finds support at $24.35 after heavy selloff overnight
DOT/USD 4-hour chart. Source: TradingView

Polkadot price has seen a steady decline over the past weeks. After the previous low at $33 was reached on the 28th of November, DOT/USD slowly retraced higher.

Another lower high was set around $39, leading to a slow decline again during the first days of December. After some consolidation on Thursday, DOT started to rapidly move lower Yesterday.

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The previous low at $33 was quickly reached and clearly broken, opening the way for a lot more downside. Overnight, strong selling pressure continued, taking the Polkadot price to a new low at $24.35. However, buying pressure has quickly returned since, likely leading DOT/USD to recover most of the loss over the weekend.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis is bullish today as we saw a strong decline end with a quick rejection from the $24.35 mark. Therefore, we expect DOT/USD to regain the loss and move towards the previous low around $33 next.

While waiting for Polkadot to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

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