According to CryptoPotato, according to technical analysis from TradingRage, Polkadot’s price action has been somewhat volatile recently, with the market experiencing a period of consolidation over the past month. However, things may be looking up.
On the daily timeframe, the price of DOT has been hovering below the 200-day moving average, hovering around $7.5. However, the cryptocurrency is approaching the moving average again, attempting a breakout. Since the $6 support level has held the price several times, the probability of the price breaking above the moving average is higher than the probability of a bearish continuation. Therefore, a breakout above the 200-day moving average and a climb towards $9 is likely to occur in the short term.
On the 4-hour timeframe, the market has been gradually rising in a large ascending channel. After bouncing off the lower boundary, Polkadot tested the channel’s midline. If a breakout occurs, the market could sprint towards the upper boundary and the $8 price mark. However, investors should be wary of the relative strength index entering the overbought zone as a correction could also occur in the short term.
