Polkadot Crypto Prediction – DOT/USD Keeping the Bullish Momentum in Solitude, While the Market Stagnates
Skerdian Meta • 2 min read
Cryptocurrencies have been having a tough time recuperating since the end of the first week of September, which brought the flash crash to the crypto market. South Korea also started a purge on cryptocurrencies, following the crackdown in China, so the sentiment remains sort of bearish for digital coins.
Bitcoin is down, trading between 43,000 and $47,000, while ETHEREUM is trading above $3,000 after breaking above $4,000 early in September. Some of the cryptos, like Solana (SOL), kept the bullish momentum going a bit longer, but they eventually retreated too and caught up with the rest of the market as it went down.
Polkadot Technical Analysis – DOT/USD Daily Chart
The bounce off the 50 SMA seems strong enough
Polkadot is the last crypto standing. It dived during the flash crash on Tuesday last week, but it reversed pretty fast and resumed the bullish trend again. As shown on the chart above, Polkadot found support at the 50 SMA (yellow) on the daily chart during that crash. It reversed higher and continued to climb, moving above the early September high of $36, and now the price seems to be heading for the all-time high, which comes just below $50. The 200 SMA (purple) has turned into support now, below $30.
Polkadot Technical Analysis – DOT/USD H4 Chart
MAs keep supporting Polkadot on the H4 chart
On the daily chart, the Polkadot coin has been relying totally on moving averages since the bullish reversal in July, as they have been supporting it during pullbacks and pushing it higher. The 50 SMA (yellow) has been the ultimate support indicator, doing most of the work in keeping the bullish momentum going for this cryptocurrency, but the 100 SMA (green) has helped as well and in the end, the 200 SMA (purple) held the decline during that crash.
Even the cryptocurrencies that were surging in recent weeks, like Solana (SOL), Axie Infinity (AXS), Fantom (FTM) and Cardano (ADA), are having difficulties, but not Polkadot, which keeps making higher highs, as the momentum continues to get stronger. Fundamentals behind this network support the bullish trend.
Polkadot Fundamental Analysis – More Developments and Product Launches
Polkadot’s rally has been supported by a number of developments for this cross-chain network. Polkadot has launched the layer-1 blockchains, or parachains, as they’re called, which should run parallel to Polkadot and Kusama Networks. Preparations for the launch of the first business grade cross-linking project are under way. Besides that, SubQuery has opened a funding process for $9, to build the first data aggregation layer in the network. This could make data indexing more efficient for the Polkadot network.
The Polkadot on-chain activity has been increasing pretty fast recently. High development activity, which is what the metrics show, has been followed by the retail crowd, which supports the high trading volumes in the DOT coin. The ecosystem-centric updates have also helped to keep the crowd growing in Polkadot. So, buyers remain in total control, and with more updates coming up, the price should keep rallying. So, we will try to get a good place to buy DOT/USD after a retrace, if that happens.