Polkadot Takes Support From Its Moving Average of 200 Days

The blockchain network being called Polkadot has shortened the cryptocurrency name to just DOT. Currently trading at just 20% below its recent highs of $39.31, Polkadot has the potential to multiply its market value and make a new all-time high in the near term. As of now, the price action is too decisive, marking a gain of above 200% in the last three months. 

Polkadot is an open-source blockchain network with a sharding protocol that offers a platform for cross-chain transfer within any data set. Thus it allows interoperability amongst a large number of blockchain networks. Polkadot intends to create a decentralized internet network. Operating on a multi-sharding protocol, DOT can process multiple transactions using parallel chains, helping it upscale quicker than other cryptocurrencies. 

Polkadot currently ranks at the eighth position in terms of market capitalization, which is over USB 30 billion, while the value of DOT is $31.45. The entire supply of DOT cryptocurrencies is under circulation.

Polkadot Price Analysis 

Polkadot cryptocurrency trades have stumbled under decent profit booking at higher levels, but the buying sentiment synonyms with its 200 Days moving average indicates the buying sentiment from a certain level. The retracement caused by this buying has helped Polkadot mark above 20% of gains on 22nd September 2021.

The $25 on DOT has become a significant psychological level since after each profit booking taking value below $25 is getting buying action forcing the value to jump over 40%. The 200 days moving average curve currently at $27.65 is a strong support level that can be taken advantage of in terms of buying. While the upper level of $32 to $36 has become a resistance level, where sellers are becoming more active. 

The trend line was broken on 20th September 2021 and held no value as an indicator of the current trend. The MACD indicator, despite trending in the positive axis, is indicating a negative sentiment because of the volatility in the last few days. At the same time, RSI has been showing a sign of relief with over 1 million volumes since Monday. RSI offers a level of 50 on the histogram with no sign of an uptrend and continues to trade in a neutral range makes RSI unresponsive for clear indication. 

Since most indicators are stuck in the neutral zone, only positive indications will be the trend line. Therefore as per our DOT price prediction, one should consider waiting for a clear indication until the prices hold the previous trend line and consolidate above that line.

DOT has jumped from the $25 level breaching the swing resistance level of $30. For now, the $30 level has become a critical zone indicating the hourly trend as a positive one. Touching the $35 mark and closing above the $33 mark will continue the present positive sentiment. RSI on hourly charts is close to bullish, while MACD shows a bearish crossover pattern formation, intending a possible selling.