Price Analysis

DOT Price Analysis: Upward Move Nears $40 Critical Resistance

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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.

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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

DOT Price Analysis
DOT/USD Daily Chart

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 4-Hour Chart
DOT/USD 4-Hour Chart

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.

Key Levels
Resistance Levels: $42, $41, $40
Support Levels: $35, $33, $31

Image Credit: Tradingview

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Tomiwabold Olajide

Tomiwabold is a currency trader and cryptocurrency analyst. A technical analyst, as well as an experienced fund manager, he has also co-authored several books on Forex trading. Tomiwabold pays great attention to cryptocurrency research, conducting a comprehensive price analysis and exchanging predictions of estimated market trends. He studied at the University of Lagos, Lagos.

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