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Polkadot has turned into one of the most bullish cryptocurrencies, together with Solana and Ethereum, which are also pushing higher today, while the rest of the crypto market has been stagnating or retreating lower. DOT/USD was one of the most bearish cryptos during the bearish period of the last few months, as it lost around 80% of its value, after making lower lows until late July, which was another strong bearish sign.
But, the bullish reversal came in the cryptocurrency market, and Polkadot pushed above the moving averages without much resistance from them, after these same moving averages had been pushing the price down for this crypto. That was the decisive signal, showing that the sentiment had made a 180-degree reversal, and now Polkadot is looking quite bullish, more so than the vast majority of the crypto market.
DOT/USD is benefiting from the increased interest in the Polkadot network, which has a low latency and high throughput. It uses sharding mechanisms to facilitate faster and cheaper transactions – eliminating a problem for them, that has been plaguing Ethereum. More than 350 dApps are built on the Polkadot network, and more upgrades and new features are on the way, as shown on our crypto calendar, with the roll out of the rest of Kusama.
Polkadot bounced off the 100 SMA yesterday
So, Polkadot bounced off the 20 SMA (gray) on the daily chart, which had been acting as support. Buyers pushed above the 200 daily SMA (purple) and the resistance zone below $30. So, the breakout is underway now. On the H4 chart above, the smaller MAs, such as the 20 SMA (gray) and the 50 SMA (yellow) were pushing the price higher for more than a month, showing that the buying pressure was strong.
Last week, we saw a pullback to the 100 SMA (green), but yesterday we saw a bounce off that moving average, and today the bounce is stretching further to the upside. So, Polkadot remains really bullish, and we might open a buy signal in this crypto, but we will wait to see if we can get another pullback lower to the moving averages.
DOT/USD
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