Polkadot prices in today’s trading session have remained stable in today’s trading session, losing less than 0.5 per cent. However, there is a high likelihood that the prices will correct and resume the current long-term bullish trend.
Polkadot has also had big announcements in the past few days, including a $250 investment commitment from Acala and other venture capitalists. The money will go towards supporting startups in Polkadot’s building DeFi ecosystem. The teams to be given priority are those that focus on building use cases of Acala dollar (aUSD). This is a crypto-backed stable coin that will become the backbone of DeFi on Polkadot and Kusama.
Looking at the 4-hour chart, Polkadot’s price set a new monthly low of $16 on March 07. Since then, the prices have traded within an ascending channel the past few weeks. In today’s trading session, the prices have remained stable with almost no volatility. The price loss is also less than 0.5 per cent.
The chart also shows that the prices have recently hit the upper trend line of the ascending channel and failed to break out of the structure. However, the prices have also failed to move downwards towards the channel’s lower trendline and instead traded sideways. This means that there is a high likelihood that the prices will retest the resistance level of the upper trend line again.
When the retesting happens, my Polkadot price prediction is that the prices will break out of the ascending channel. I expect the prices to move past the ascending channel trading structure towards the $23 resistance level. However, this analysis will be invalidated if the prices fall below the $20 level. If that happens, there is a high likelihood of the prices becoming bearish. It will also be likely for the prices to retest the support level of the lower trend line of the channel.
This post was last modified on Mar 24, 2022, 09:16 GMT 09:16