- Polkadot price is currently contained inside an ascending parallel channel.
- The Polkadot ecosystem has seen significant growth in the past month.
- The protocol is still in its infancy and has a lot of potential to grow more.
Polkadot has been one of the fastest rising cryptocurrency projects in the past year, reaching a market capitalization of $15 billion, ranked fourth. The Polkadot ecosystem includes significant projects like Ocean Protocol, Ankr or WalletConnect.
Polkadot price needs to defend a crucial support level to rebound
According to statistics from Coin98 analytics, over $10 worth of Polkadot coins are staked inside exchanges or wallets. In addition to the substantial number of coins locked, the Polkadot ecosystem has received a lot of interest from big players in the recent months including Binance, Huobi, and others.
3/9
— Coin98 Analytics (@Coin98Analytics) January 21, 2021
More and more VCs are interested in Polkadot, especially, there are some funds that only specialize in investing in projects in the Polkadot ecosystem such as Web3 Capital, Hypersphere, KR1, Polychain Capital,.... pic.twitter.com/XyR719Kn5I
DOT has established an ascending parallel channel on the 4-hour chart and bulls are just defending the lower support trendline at $15. Successfully holding this level can quickly push Polkadot price towards the middle of the pattern at $17.15.
DOT/USD 4-hour chart
To give credence to this bullish outlook, the TD Sequential indicator has just presented two buy signals on the 2-hour and 3-hour charts.
DOT buy signals
However, it is still entirely possible for the bears to push Polkadot price through the support level at $15. This breakdown can lead to a 20% move to the downside with a price target of around $12.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.