Polkadot price prediction: DOT to test $42 resistance, can the bulls breakthrough?
Last week, DraperU announced its first blockchain-focused hackathon, which will take place in San Francisco between July 30th and August 2nd. The hackathon will be accompanied by an ICO pitch competition for the DraperU community to vote on, as well as a “Pitch Day” for the final teams to make their case for why their ICO or token should be the next to raise money from the prestigious venture capital firm. The event is sponsored by Polkadot, a decentralized blockchain that is designed to solve the scalability and interoperability problems that have plagued the blockchain industry to date.
While the market has been quiet, the Polkadot team has not. Last week, the team announced it will launch its testnet on March 15, 2018. Further, the team is working on some significant partnerships that could have a major impact on the price of Polkadot (DOT) moving forward. These include a partnership with the Web3 Foundation, and another with Parity Technologies. While a bit more speculative, Polkadot has also announced a partnership with the Ethereum Community Fund. Polkadot has managed to develop a strong following of believers in the potential of the project. The hype has also spread to the price of the coin, with the DOT/USD pair skyrocketing from $1.36 on January 1
Summary of the situation
Polkadot’s price is expected to rise to $44.
The closest support is at 40
DOT encounters resistance at $42.
Polkadot’s price broke above $38 and strong bullish momentum brought the price just above $41.00. The DOT has posted gains of more than 13% over the past seven days, indicating continued bullish momentum. However, the strong upward movement is giving way to volatile price movements.
The broad crypto-currency market was bullish over the past 24 hours, with most major crypto-currencies posting gains throughout the time frame. Among the top performers were Ripple’s XRP and DOT, which gained 7.01% and 6.07% respectively. Meanwhile, Bitcoin and Ethereum posted gains of 1.44% and 4.64%, respectively.
Technical data for DOT/USDT
Technical indicators for Tradingview DOT/USDT
As for the technical indicators, the MACD showed a bearish reversal today and has remained bullish since, as indicated by the appearance of a dark green histogram. When prices began to rise, so did the MACD, indicating little bullish momentum in the markets. While both EMAs are currently moving higher, the 12-EMA is breaking away from the 26-EMA, showing increasing bullish momentum at the time of writing.
The RSI is currently in neutral territory, just above the 60.00 mark, but giving no signals. In the past month, the indicator was in the neutral zone. At the time of publication, the RSI made another small jump into overbought territory, indicating a growing bullish presence at current price levels and suggesting buyer resistance.
The Bollinger Bands are tight right now and since the last candle is red, the bands will get tighter in the near future. As the bears take over the market dynamics, this will lead to less volatility in the Polkadot price in the short term. However, as the Polka Dot price consolidates on the upper boundary rather than the midline of the band, the bands will be tilted upwards in the next few candles.
Overall, the technical analysis on the 4-hour chart shows a strong buy signal. 16 out of 26 leading technical indicators point to an upward movement. On the other hand, only one indicator gives a sell signal, indicating a bearish pullback. Meanwhile, nine indicators continue to lag, supporting neither side of the market.
The 24-hour technical analysis shares this view and also gives a strong buy signal with 16 out of 26 indicators pointing up against zero indicators pointing down. Meanwhile, ten indicators remain neutral and give no signal at the time of writing.
What can we expect from the Polkadot award?
The 4-hour price chart from Tradingview
Traders should expect Polkadot’s price to break above the $42.00 resistance level while the price is on its way to $45.00. The next resistance lies at $44.00, which was already reached on the 6th. In May, the trend was reversed.
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