- Summary:
- Polkadot price has been consistently on the uptrend in the last five days as the wider crypto market faltered. What does it mean for DOT?
Polkadot price has shown impressive consistency by staying on the upside as the wider crypto market faltered. DOT price was up by 4.3 percent at the time of writing, and traded at $9.21. The coin previously spiked to an eight-month high price of $10.80 on Sunday, signifying an underlying strong bullish rally potential.
While crypto market bellwether, Bitcoin, has traded sideways in the last three days, DOT price has made successive daily gains for the last five days. Its weekly gains of 70 percent has created a strong upward momentum, putting it on the path to retesting its year-to-date highs of $11.89 set in March.
On-chain metrics signal weakening upside
On the downside, however, on-chain data signal a potential weakening of the uptrend. As per Coinglass data, Open Interest in DOT has reduced by 0.4 percent in the last 24 hours. That means traders are either closing their positions in the asset or liquidating their holdings. In addition, the DOT trading volume dropped by 50.3 percent, adding credence to the weakening momentum.
These factors could bring downward pressure on Polkadot price if the trend continues. Also, the RSI reading is at 82 on the daily chart, signaling overbought conditions. Therefore, looking at these metrics, Polkadot looks likely to slow down its ascent unless there is a market-wide spike in volatility.
Poladot price key levels
Pivot: Polkadot price currently pivots at 8.99, near the double-top pattern formed on the 30-minute chart. The upside momentum will prevail if action stays above this level. Otherwise, the sellers will be in control.
Resistance: The first support is likely to be at 9.35. A stronger momentum could breach that mark and test 9.70.
Support: Moving below 8.99 will favour the downside. In that case, initial support is likely to be at 8.73. A decline below that level will invalidate the upside narrative. Also, the resulting momentum could extend the decline to test 8.45.
