The Polkadot price has been unstoppable over the last two weeks. But there are signs that even after rallying 75%, DOT may be going much higher.
Polkadot is trading at $18.13, down $0.28 (-1.55%)
On the 20th of July, Polkadot was below $11.00 and testing 2021’s uptrend. Fast forward to yesterday, and DOT had gained 98% and was breaking ground above $20.00. Although this morning, the price has pulled back around 12% following Bitcoin’s slide below $40,000.
Nonetheless, since the 20th, Polkadot has added more than $7 billion to its market cap, which now stands around $18 billion. This cements the coin as the 9th-largest cryptocurrency, way ahead of Uniswap’s $13 billion market cap.
The bulls will certainly be encouraged by the recent price performance. However, the question is, will DOT continue higher, or will Bitcoin put the brakes on the Polkadot rally for now?
The daily chart paints a positive picture of the price. Polkadot has cleared the significant $13.62 and $17.20 horizontal resistance levels, which now provide support.
Additionally, DOT has reclaimed the 50-day moving average at $15.87, which adds to the robust price support below the market.
Resistance is seen at the 100 DMA at $23.09. However, the 200-day average at $27.00 seems a logical target for the bulls should the price extend higher.
Although, the Relative Strength Index is looking a little stretched. The reading of 66.5 is considered close to overbought. This suggests the price may enter a period of consolidation.
However, if Bitcoin succumbs to a deeper decline, DOT will undoubtedly move lower.
And on that basis, if the Polkadot price loses the $17.20 support level, a test of the 50 DMA is likely. If DOT falls below $15.87, the bullish outlook becomes invalid for now.
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