| Yaz Sheikh

Key highlights:

  • Polkadot saw a powerful 34% price surge over the past 24 hours as the coin now trades at $12.08
  • The cryptocurrency bounced from support at the 100-day EMA toward the end of December and has been surging since
  • Against Bitcoin, DOT dropped ₿0.000221 this week and found support there to rebound back to the December highs at ₿0.000318
Polkadot price $12.50
Key DOT resistance levels $12.60, $13, $13.20, $14, $14.41, $15
Key DOT support levels $11.61, $11, $10.93, $10.53, $10, $9.50

*Price at the time of publishing


The price of Polkadot exploded today as it surged by 34%, allowing the cryptocurrency to set a new ATH price at around $12.60. It has since dropped slightly lower and is trading at $12.10.

The cryptocurrency had started to surge toward the end of December when it bounced from around $4.50 (100-day EMA) and began to climb. It struggled with resistance at $10.53 (1.618 Fib Extension) in January 2021, but this resistance was penetrated yesterday after DOT bounced from $8.20. 

Polkadot (DOT) is a cryptocurrency that was recently launched in August 2020. It conducted its ICO in October 2017, in which it managed to raise almost $248 million at an ICO price of $0.29. The project is a blockchain that aims to increase scalability and interoperability within the industry.

It was founded by the co-founder of Ethereum and inventor of the Solidity programming language, Gavin Wood, and they have been silently working on its technology since the ICO for over 3-years.

When the DOT token itself was launched in August 2020, the Google search trend saw a spike in Polkadot related search terms. However, toward the end of December 2020, the search activity for the term exploded much higher and is now at the all-time high level of interest:

The recent surge in interest and price activity seems to correlate with a recent surge in development activity from the team.

The chart above shows how active the team has been in recent months. Of course, there was a slight dip during the holiday season, but the developers are back in active work-mode as they continue to improve their product.

Lastly, it seems that DOT whales are continuing to increase their holding size, with neither whale band beginning to sell off their positions;

This suggests that even with the latest surge in price, whales are increasingly confident that DOT will be heading higher over the coming weeks.

Let us look at the market and highlight some potential areas of support and resistance for DOT.

Polkadot price analysis

What has been going on?

Taking a look at the daily chart for DOT above, we can clearly see the bullish surge starting at the end of 2020 when DOT bounced from the 100-day EMA at around $4.50 and started to climb higher. 

By the start of 2021, DOT had already managed to reach the $9.00 level. From there, it pushed higher but became stuck by resistance at $10.63 (1.618 Fib Extension level). It could not break this resistance in the first week of January, which caused the coin to roll over and head lower into the $8.20 support (.5 Fib Retracement).

DOT bounced higher from this support yesterday and went on to smash past the resistance at $10.53 to close at $10.93 (1.272 Fib Extension). Today, DOT continued higher to reach as high as $12.60 (1.618 Fib Extension) but has since dropped to $12.08.

DOT price short-term prediction: Bullish

DOT is considered strongly bullish as it continues to set ATH prices. It would need to break beneath $7.32 *.618 Fib) to turn neutral and close further beneath $6.00 to be in danger of turning bearish.

If the sellers push lower, the first level of support lies at $11.61. This is followed by support at $10.93, $10.53, $10, and $9.07 (.382 Fib Retracement). Added support is found at $8.20 (.5 Fib Retracement), $8.00, and $7.32 (.618 Fib Retracement).

Where is the resistance toward the upside?

On the other side, the first level of resistance lies at $12.60. This is followed by resistance at $13, $13.20 (1.414 Fib Extension), $14, and $14.41 (1.618 Fib Extension). If the buyers continue to drive DOT above $15, additional resistance lies at $15.23 (short term 1.414 Fib Extension), $16, and $16.50 (short term 1.618 Fib Extension).

DOT/BTC price analysis

What has been going on?

Against BTC, DOT also rebounded at around ₿0.0002 toward the end of December. It managed to surge as high as ₿0.000318 by January 1st, 2021 but started to head lower from there. It continued to fall until support was found near ₿0.000221 (.786 Fib Retracement), which allowed the coin to rebound.

From there, it has pushed higher to reach the resistance at ₿0.000318 again today.

DOT/BTC short-term prediction: Neutral

DOT is considered to be neutral against Bitcoin until it can close a daily candle above the resistance at ₿0.000318. It would need to drop beneath ₿0.0002 to turn bearish again.

If the sellers push lower, the first level of support lies at ₿0.0003 (100-day EMA). This is followed by support at ₿0.000275, ₿0.00026 (.5 Fib), ₿0.000244 (.618 Fib), and ₿0.000221 (.786 Fib).

Where is the resistance toward the upside?

On the other side, the first level of resistance lies at ₿0.000335 (bearish .382 Fib Retracement). This is followed by resistance at ₿0.000352, ₿0.00037 (1.272 Fib Extension), and ₿0.000383 (bearish .5 Fib Retracement). Beyond ₿0.0004, added resistance lies at ₿0.000431 (bearish .618 Fib), ₿0.00045, and ₿0.0005 (bearish .786 Fib).



Back link Polkadot Price Analysis – DOT Continues To Surge and Sets New ATH With 34% Price Spike, How High Can It Go? | CoinCodex https://cloudtokenplus.com https://cloudtokenplus.com

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