DOT rallied above the $20.00 resistance degree to achieve a brand new all-time excessive of $21.56
Polkadot (DOT) has traded at a excessive of $21.56, a brand new document for the cryptocurrency that traded as little as $2.60 on 20 August 2020. The upside above $20.00 means DOT worth is now over 644% up over the previous 5 months.
And with sentiment throughout the crypto market trending north, Polkadot may but surge increased. For DOT/USD, one other elementary driver of an upside may very well be the launch of a DOT-based ETP scheduled for 4 February 2021.
According to the ETP supplier 21 Shares, the exchange-traded fund will probably be listed on the Swiss SIX Exchange, permitting much more institutional involvement within the asset. The product will probably be 100% collateralised towards the DOT worth, with 21 Shares offering a assure to on-exchange liquidity.
A optimistic outlook from this occasion is probably going to enhance the technical image and see DOT bulls goal the $24-$30 vary.
At the time of writing, DOT/USD is buying and selling at $20.40, with intraday worth change at 18.5%. Trading quantity has spiked 120% to over $6 billion, with market capitalisation rising to $18 billion.
DOT/USD worth outlook
Polkadot worth has hit resistance after reaching the intraday excessive that additionally marks its ATH. Bulls have confronted elevated promote stress close to $21.00, with bears’ curiosity doubtless pegged on retracing to the 20-day EMA ($16.54). The transferring common offered the rebound platform that noticed patrons push to $21.56 throughout the Asian buying and selling session.
Keeping costs above the 20-EMA on the day by day chart is thus crucial to bulls’ plans to retest the intraday peak. If the DOT/USD pair stays above $20.00, the possibilities of one other leg up within the subsequent few periods improve.
DOT/USD day by day chart. Source: TradingView
A breakout above $21.00 may see the DOT/USD pair goal $24.00, with $30.00 coming into focus if shopping for stress sustains.
The RSI is slightly below the overbought zone to counsel bulls maintain the benefit. The exponential transferring averages additionally help an uptrend as might be deduced from the rising curves.
The above perspective may invalidate if costs break decrease. A reversal to the earlier resistance line at $18.64 may assist sellers and see DOT/USD start a downtrend.
While the 20-day EMA ($16.55) presents robust help, failure to consolidate close to this degree may see costs drop to the horizontal help line at $14.48. If bears sink DOT/USD beneath this anchor, the following cease may very well be the 50-day EMA ($13.00).