Polkadot - Fueling the Current
When Bitcoin fell from its ATH, it took a pretty large hit correcting at around 27%, and as we all know, when Bitcoin bleeds, altcoins generally tend to get hit harder, and Polkadot fell by 45% during that same period all the way down to $26. A long way down from its ATH of $48. However, just like many other altcoins in recent days, Polkadot is also generating some of its own fuel to the Crypto Current and is now flying high once again.
We can see Polkadot fell right exactly at the bottom of the range at $28.50 and on the RSI we can see it nearly entered the oversold zone which, along with a Bitcoin push, triggered a reversal and has now broke through the previous resistance of the range at $40, which is also a psychological level. Polkadot also faces key resistance from its first ATH which is also a key pivot at $42.20 which will prove another key barrier to break. If Polkadot manages to break through these resistance levels then it could very much enter price discovery once again.
DOT vs BTC vs ETH
Since the reversal, we've seen Polkadot outperforming Bitcoin approaching the top of the range in the DOTBTC chart.
We have approached the top of the range yet again and we can see strong resistance at 0.000762 BTC once again. If we see a close above the previous ATH of 0.000789 BTC then we can comfortably say that Polkadot is breaking out of the range. For now, we can see the upper band proving to be strong resistance once again and will most likely look to retest it over Friday and Saturday.
As Ethereum has been on a very extensive run, as part of phase 2 of alt-season, Polkadot has been consistently bleeding against Ethereum, just like most large-cap altcoins.
However, Polkadot has rebounded at a key previous support/resistance level and the RSI is in the oversold region. This suggests that Polkadot could be seeing a reversal against Ethereum which has now seemed to cool off its run. Therefore, the next few resistance walls Polkadot will be up against are at 0.118, 0.15 and 0.165 ETH.
There is also the risk of falling further to the downside and if Ethereum shows signs of restarting another run then it could definitely fall below the current pivot.
Where are we heading next?
The problem with Polkadot at the moment is that there are quite a few key resistance levels it has to overcome, and that could significantly slow down the bullish momentum of Polkadot. That being said, the DOTETH chart looks promising, and the DOTBTC chart is at a very important point and so it is still very much up for grabs. If it does breakout I see DOT going to $60 very soon, although it will be very hard to see where DOT could be stopped as it is still a very relatively young coin.
The bull market support has reached DOT's current price and so therefore unless we are no longer in a bull market, I do not see much downside risk of DOT falling under the existing range. Therefore, I am very bullish on DOT.
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