polkadot. wooden cubes with the inscription polkadot on the background of the distributed defi network
Polkadot price has spent most of the first half of April in a downtrend, and it seemed headed for the six-week support at $15.94 until three days ago. However, DOT has lost about 11.5% of its value over the past seven days, which could challenge its efforts to build strong momentum. As a result, the bulls will likely target hitting the psychological support at $20 to build the momentum for an uptrend.
Polkadot’s fundamentals received a significant boost this week following USDT’s launch on the Kusama network. Kusama is a Polkadot parachain that developers use as a trial field for projects before launching on Polkadot. Considering that USDT is currently the third most-valuable digital coin, the move is likely to boost DOT.
Also, despite the turbulence that has faced Polkadot price, its parachains auctions are still a hit. Two days ago, Unique Network joined the Polkadot ecosystem, having won the 14th Parachain slot. It raised $14.3 million, beating other projects and underlining Polkadot’s continued attractiveness as a launchpad for new projects. Also, Unique has brought the first native NFT platform to Polkadot. Moreover, the platform is fully interoperable, which could make it more appealing for NFT projects.
Polkadot price has been trading sideways over the past two sessions and has gained a marginal +1.33% in the last 24 hours. The RSI is at 41, which indicates neutral momentum. Also, the price is below the MA, signalling that the price is likely to trade between a narrow range of $17.19 – $18.56.
A break beyond the upper band is likely to see the price encounter resistance at $19.20. If the price breaches this point, the next target will be the psychological barrier at $20. However, this bullish view will be invalid if the price breaks below the second support at $15.86.
This post was last modified on Apr 15, 2022, 13:20 BST 13:20