The Polkadot price has risen 14% over the last 24 hours as DOT hit a new all-time high at $50.87. The Polkadot network moves toward increased functionality as parachains loom.
The Polkadot price rallied approximately 24% on Monday to register a new record high at $50.87, rising above the $49.35 May record high.
Increasing functionality of the Polkadot blockchain network provides the hind wind propelling the DOT bullish run.
Parity technologies, the company behind Polkadot announced that “parachains” were coming to the network on October 13. Parachains (parallel blockchains) refer to full blockchains that will be incorporated into the Polkadot blockchain network to aid in validating and securing transactions. Polkadot’s aim is to increase the interoperability of blockchain networks hence becoming the blockchain for blockchains. This will make the Polkadot network a layer-zero protocol.
After the announcement, the demand for Polkadot increased as both the DOT price and trading volumes skyrocketed. However, prior to yesterday, the price was held in a tight price range between $40 and $45.
Polkadot Price Rallies 14% To Set New Record Highs
DOT price bounced off the demand zone (green band) at $40.56 at the end of the weekend as illustrated by the long lower wick on Sunday’s candlestick. This is an indication that investors were getting in on the dips.
This bolstered the DOT bulls on Monday who have pushed the Polkadot price 14% upwards over the last 24 hours. A rally that saw the asset hit a new record high at $50.87.
DOT/USD Daily Price
The bears, however, are determined to pull the DOT price down. If Polkadot turns down from the current price around $48.56 it will find support at the $46.30 level.
Therefore, expect DOT to take a breather at the end of the supply zone at $46.30 after which a resumption of the upward movement to new record highs above $50 will be the next logical move.
On the downside, a slip below the $46.30 level could see the Polkadot price drop to tag the 50-day SMA at $36.76.
Polkadot Forecast DOT/USD December 8, 2021
DOT/USD are trading at 29.18 and continue to move within the correction and bearish channel. Moving averages indicate a short-term bullish trend for Polkadot. Prices went up from the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of the rise from the current levels. At the moment, we should expect an attempt to develop the growth in the value of a digital asset and a test of the resistance level near the 32.05 area. Where can we expect a rebound down again and the continuation of the fall in the Polkadot rate with a potential target below the level of 24.05.
Polkadot Forecast DOT/USD December 8, 2021
In favor of reducing the DOT/USD quotes, a test of the trend line on the relative strength index (RSI) will come out. The second signal will be a rebound from the upper border of the descending channel. Cancellation of the coin falling option will be a strong increase in the value of the asset and a breakdown of the 35.55 area. This will indicate a breakdown of the resistance area and a continued rise in the cryptocurrency rate with a potential target above the level of 42.05. With the breakdown of the support area and closing of quotations below the level of 27.05, we should expect confirmation of the development of the bearish trend for Polkadot.
Polkadot Forecast DOT/USD December 8, 2021 suggests an attempt to correct and test the resistance area near the level of 32.05. Where can we expect a rebound and the continuation of the fall in DOT/USD to the area below the level of 24.05. An additional signal in favor of reducing Polkadot will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall option will be a strong growth and a breakdown of the 35.55 area. This will indicate a continued rise in the cryptocurrency with a target above the level of 42.05.
Polkadot price to return to $40 if near-term support holds
- 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.
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.
Polkadot price analysis: DOT to retest support at $27.2, as price steps down to $28.7
- 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.
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.
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.
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.