Polkadot Resuming the Bullish Trend Again, After Bouncing off the 20 SMA
Skerdian Meta • 1 min read
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.