The cryptocurrency market is still in a recovery phase after incurring significant losses from the breakdown on Monday. Polkadot traded to highs of $10.28 on January 10 before the entire cryptocurrency market collapsed. Selling by short term traders pulled DOT price down to lows of $6.38 on January 11th. However, the bulls were able to flip the $6.38 level into support causing Polkadot to resume its uptrend. A massive liftoff is seen on the DOT/USD chart to intraday highs of $10.98. DOT market cap is ranked 7th on the Coinmarketcap table with the current market capitalization of $8.98 billion, as calculated from a 220 million free float supply. At current levels, DOT has gained 27.36% on the day and 0.67% on a 7-day basis. DOT/USD is exchanging hands at $10.15 amid a renewed bullish momentum as on-chain data indicates a climb in Polkadot daily volume. On-chain analytics firm, Santiment noted that Polkadot’s daily trading volume is climbing gradually after peaking at $3.5 billion on January 4. The volume dropped early this week to $1.4 billion but now stands at $2.2 billion as of press time.
*Selling by short-term traders pulled DOT price down to lows of $6.38
*DOT/USD is exchanging hands at $10.15 amid a renewed bullish momentum
*Santiment noted that Polkadot’s daily trading volume is climbing gradually
Resistance Levels: $14.00, $12.00, $11,00
Support Levels: $8.00, $6.40, $4.50
DOT/USD Daily Chart: Bullish
DOT/USD Daily Chart
Polkadot rebounded from support at $7.85 to reach intraday highs of $10.98. The RSI in positive territory suggests the bulls are in control. A further push by the bulls may cause of retest of the January 6 high near $12. The bears may try to pose a stiff challenge at this level but when crossed, the momentum could pick up and the pair could rise to $14.
On the downside, a correction may come into the picture in the event of a rejection, thus revisiting the support at $8.5 and $8.0. If this fails, DOT/USD may be forced to seek the next buyer congestion level at $6.40. The bullish outlook will be invalidated if the bears sink the price below $6.40.
DOT/USD 4-hour Chart: Bullish
DOT/USD 4-Hour Chart
On the 4-hour chart, Polkadot has reclaimed the support at the two MAs 50 and 200. The bears may need to sink the price beneath the two moving averages to confirm a bearish comeback. Its intermediate support is seen around $8.0.
On the upside, key resistance is seen on the approach to $12 while the bulls may face minor resistance near $11. Once these levels are crossed, DOT/USD may seek to extend upside gains to $14. The DOT/USD pair stays bullish while trading above the $8 mark, key resistance is found at the $11 and $12 levels.
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