Polkadot [DOT] Could Encounter Bears While Heading Towards $40

The crypto market is probably in its most volatile state. All the assets including, Polkadot [DOT], Bitcoin [BTC], Binance coin [BNB] were seen falling back after achieving new highs. Bitcoin has been swinging between $49K and $52K. While the king coin is finding it hard to form strong support at $50K, moving back to its all-time high could be difficult for BTC. Binance coin [BNB] was out of the crypto spotlight after it slumped down below $250. The altcoin even made way for Cardano [ADA] to take over the third position on the crypto ladder.

Polkadot [DOT] had witnessed an influential surge in terms of both price as well as market cap in the last few weeks. The fairly new coin shot up to a high of $42.06, which was quite a head-turner. DOT climbed up the crypto ladder and accommodated the sixth position. At press time, DOT’s market cap was noted at $33.67 billion. The asset was priced at $36.68 with a 1.54% drop, in the last 24-hours.

Polkadot [DOT] One-Hour Price Chart

The short-term price chart of DOT was seen vacationing with the bears. The Bollinger Bands indicator suggested limited volatility as the bands were seen converging. This was quite beneficial for the altcoin considering the bears present in the DOT market. The Awesome Oscillator affirmed this by forming red closing bars.

The Money Flow Index indicator was over 50 median which further suggested that DOT was in the buyers’ zone.

Polkadot [DOT] One-Day Price Chart

The one-day price chart of DOT brought in positivity in the altcoin’s market. The Parabolic SAR indicator had brought down the dotted lines below the candlesticks further restricting a downward breakout. The Chaikin Money Flow indicator mirrored this sentiment by remaining over zero. The Relative Strength Index announced that DOT was close to being overbought as the marker was close to 70 median.

While DOT could encounter a short-term blip, the asset could have a smooth journey, in the long run, the aforementioned indicators suggested.

Sahana Kiran: Experienced Journalist with a demonstrated history of working in the online media industry. Skilled in Photography, Feature Writing, Journalism, Online Journalism, and Web Content Writing. Strong media and communication professional with a Bachelor of Arts - BA focused in Journalism