Polkadot Resuming the Bullish Trend Again, After Bouncing off the 20 SMA

Polkadot is bouncing off the 20 daily SMA

Skerdian Meta•Tuesday, March 2, 2021•1 min read

The bullish trend is resuming again on the daily chart

The price action in cryptocurrencies has turned more normal in the last few days, compared to the immense volatility of the previous months. Although, a $ 9 increase in Polkadot in a few days is still a lot; it means a 30% increase in value.

That’s more than most of the major cryptocurrencies out there, which have started to turn bullish this week after the deep pullback last week. In the last two months, the value of Polkadot has increased more than 8 times, and looking at the daily chart above, it seems like the bullish trend will continue further, as we also explain in detail on our Polkadot price prediction for 2021.

The 20 SMA (gray) held as support on the daily time-frame during last week’s retrace down, despite being pierced a few times, which doesn’t count as a break officially, since the daily candlesticks didn’t close below it.

The price formed a doji candlestick at the 20 SMA, which is a bullish reversing signal after the pullback, and it is now moving higher again. So, DOT/USD has appreciated around 30% since the weekend and it will probably make new highs soon. We didn’t open a buy signal down at the 20 SMA here, because we already have two long-term crypto signals in Ethereum and Litecoin, but last week’s retrace was a great opportunity to buy Polkadot.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.