The Polkadot price has rallied 25% in the last 72 hours but is yet to breakout. So will its new, wider audience finally get DOT back above $30?
Polkadot is last trading at $24.03, +0.6200 (+0.3%)
DOT currently has a market cap of around $23 billion, ranking as the 9th largest crypto asset by valuation.
The addition of DOT to Coinbase pro could provide a welcome boost to the price.
Polkadot has staged a respectable recovery from its May 12th low of $13.59. However, despite gaining 77% this month, it will have to more than double from here to reach its $50.75 all-time high.
That being said, recent developments suggest the outlook is rapidly improving. Polkadot’s canary network Kusama is gaining traction and yesterday approved its first parachain auction.
Projects hoping to launch blockchains on Polkadot must trial first on Kusama. So naturally, the Polkadot price pays close attention to advances at its feeder network.
DOT is condensing within a tightening trading band. The 4-hour chart shows A descending trend line from the 18th of May at $25.55. This is the start of a broad resistance area up to $32.00.
If Polkadot can punch through the $32.00 level, it should have a clear run higher to $45.00.
Alternatively, the price is supported by a rising trend line at $20.73. If the trend fails, the next level of support is Monday’s low of $19.30. Moreover, a deeper sell-off would target the 23rd of May low at $13.60.
Considering Polkadot’s progress I favor the upside overall. However, I would prefer to see how DOT performs in the coming days/weeks before committing to a price prediction.
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