The cryptocurrency market is set to celebrate the New Year with new highs. BTC set a new all-time high at $29,321 before retreating. Polkadot (DOT) surpassed its previous all-time high of $7 and climbed above the next resistance of $8. On December 31, DOT went ahead to set fresh highs of $8.56. At its present price of $8.48, DOT has gained 14.88% on the day and 59.76% on a 7-day basis. The market cap is ranked 6th on the Coinmarketcap table with the current market capitalization of $7.3 billion. Breakout on DOT/USD to highs of $8.56 began on December 28 after Binance Home Page Listing & $10M Endorsement. At the time of writing, Polkadot is exchanging hands at $8.33, after registering an intraday high at $8.56. Binance recently announced a $10 million fund to support projects on Polkadot. DOT rallied on Dec. 28 after Twitter users noticed the ETH/BUSD pair on Binance’s homepage had been replaced by the DOT/BUSD pair, giving DOT a lot more exposure.
*On December 31, DOT went ahead to set fresh highs of $8.56
*At its present price of $8.48, DOT has gained 12.34% on the day and 59.76% on a 7-day basis
*Breakout on DOT/USD to highs of $8.56 began on December 28 after Binance Home Page Listing & $10M Endorsement
Key Levels
Resistance Levels: $6.90, $6.00, $5.20
Support Levels: $4.50, $4.00, $3.54
DOT/USD Daily ChartPolkadot’s uptrend gathered momentum on December 28 when it rallied from lows of $5.00. The upsloping moving averages and the RSI in positive territory suggest the bulls have the advantage. If the upside momentum is sustained, the DOT price may proceed to $10 and then $12.
On the flip side, if the price turns down from current levels and the bears succeed in pushing the price below $7. Support is envisaged at $6.72 and below this level, a drop to $6.0 and then to $5.24 at the MA 50 is possible. Such a move will suggest that the momentum has weakened and that could keep the pair range-bound for a few days.
DOT/USD 4-Hour ChartAs it stands now, DOT/USD is in the bull’s territory. A further push by the bulls may bring the $10 key level to the fore. Polkadot flipped the 4 hour MA 50 and MA 200 into support levels on December 28. The bears will therefore need to push the price below the two moving averages to confirm a bearish outlook. The RSI in overbought levels may suggest an imminent correction.
Barring an extended sell-off, the DOT/USD pair must avoid the sub-$7.00 levels. On the other hand, if $7 gives way, the sell-off may be extended to the next critical level of $6.0 and then $5.6. If this barrier is verified as a support, the near-term bullish trend will be confirmed. The DOT/USD pair is only bullish while trading above the $6 mark, key resistance is found at the $8.56 and the $9.00 levels.
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