The sentiment in the crypto market seems to be turning around, after cryptocurrencies have been climbing higher over the last several days. Bitcoin reversed from above $40,000 and into $50,000, while Polkadot might have resumed the bullish trend already, after making some decent gains during last week, so let’s have a look at these two cryptos.
Polkadot Daily Chart Analysis – DOT Coin Moves Above Moving Averages
Like most cross-chain networks which have shown great resilience since the end of the previous bullish period in July, Polkadot appreciated nearly 400% from the bottom in July. as we covered on our 2021 Polkadot forecast, to the high in September before the next bearish wave. it even pushed above the September 7 high right before the flash crash, as El Salvador introduced Bitcoin as legal tender in the country.
Let’s see if this latest bounce off the 200 SMA will take DOT/USD above $40
Now, after the negative sentiment in the crypto market took its toll on all cryptos during most of September, cross-chain networks like Polkadot are showing resilience again. The 200 SMA (purple) turned into great support for DOT/USD on the daily chart, where this crypto has bounced off three times from.
Yesterday Polkadot formed an upside-down pin candlestick after pushing above the 20 SMA (gray) last week, so this moving average and the 50 SMA (yellow) didn’t turn from support into resistance. But the pin candlestick is a reversing signal and the stochastic indicator is reversing from almost overbought levels.
But, this time the third bounce might be a real one, which means that Polkadot has/will resume the bullish trend. The sentiment in the crypto market seems quite positive, which will help DOT push further to the upside. Polkadot continues to attract users and developers into their network, with the ecosystem’s low-latency and high throughput network, which uses a sharding that helps with faster and cheaper transactions. It is progressing further ahead though, with the “canary network” Kusama which started the second batch of para-chain auctions a month ago.
A lot of projects building on Kusama should have a fully dedicated para-chain slot, but not everyone is going to get a slot. This leads to the demand increasing for Polkadot and the DOT coins. The fundamentals are bullish, so as long as the sentiment remains positive DOT/USD should run higher above September highs soon. The resistance zone below $40 is to be watched and if it goes, then those who are long on Polkadot should hold on to their trades.