Polkadot (DOT) price continues to move northward, as general cryptocurrency market sentiment improves. The DOT/USD pair bounced off the support of an ascending trendline at $27.29 on Mar. 24.
*The pair broke the resistance formed by the MA 50 at $33.85 to further enter the positive zone
*The $40 level has been confirmed as resistance
*Enjin set to launch the first-ever NFT blockchain built on Polkadot
DOT/USD started a strong increase from the $27 support zone. The pair broke the resistance formed by the MA 50 at $33.85 on March 31 to further enter the positive zone. As a result, Polkadot has surged by nearly 50% against the US Dollar since the prior week. DOT’s upward move nears the critical resistance at $40. The $40 level has been confirmed as resistance after the Polkadot price was rejected at this level on three counts since the beginning of March. Eyes will be on whether DOT/USD would follow and breakthrough $40 resistance to resume the rise to its February all-time high of $42.71.
Enjin Set To Launch First-Ever NFT Blockchain Built on Polkadot
Amid the NFT frenzy, Enjin is set to launch the first-ever NFT blockchain built on Polkadot after securing $18.9M funding. This comes as the Polkadot ecosystem gears up for parachain auctions. Though most parachain candidate projects initially expected a release between Q1 and Q2 of 2021. Moonbeam is planning for a Q3 2021 launch. PureStake, the company behind the Moonbeam and Moonriver networks, two parachain candidates for Polkadot and Kusama, respectively, announced a successful $6 million raise ahead of parachain launch on Polkadot.
DOT Daily Chart: Bullish
Technically, the DOT/USD break of the MA 50 at $33.85 suggests a resumption of rising towards the $40 level. the Daily timeframe shows a steady growth of bullish pressure. now trading at $38.26, DOT’s upward move is now heading to the critical resistance at $40. In the case of the $40 level providing resistance, Polkadot’s price could decline and once again test the support of the MA 50 at $33.85.
An intermediate support is seen at today’s low of $35.39. If the support does not hold, the $31.13 could immediately provide additional support. On the other hand, if the resistance zone at $40 does not hold, Polkadot’s price could reach for the resistance of the zone near its all-time highs of $42.71. The RSI at 60 indicates a minor advantage to the bulls. To summarize, as long as DOT price is above the moving averages, growth remains the main direction.
DOT 4-Hour Chart: Bullish
DOT approached the critical resistance at $40 as seen in intraday highs of $39.33. A decline to $37.11 occurred as the bulls could not flip the key resistance. DOT price needs a strong push higher to create further gains above $40, having confirmed it as resistance since the beginning of March. A potential decline could step by step reach the support at the MA 50 at $35.22. Holding above the 4 -hour MA 50 is key to sustaining the uptrend and keeping losses at bay.
If selling pressure intensifies, DOT could extend its decline below the MA 200 support at $33.27 to test support at $31.14 and $28.18 respectively. Everything being equal, DOT could continue to surge in an ascending trend pattern during the following trading sessions. The possible target for buyers beyond all-time highs of $42.71 will be near the $53 level.
Resistance Levels: $42, $41, $40
Support Levels: $35, $33, $31
Image Credit: Tradingview