Polkadot (DOT) Reviews for June 2023

Polkadot (DOT) has been in a downtrend for the past several months but the bulls are trying to form a bottom in the zone between $16 and $14. The price rose above the 20-day EMA of $17, but the bulls have not been able to overcome the barrier at the 50-day SMA of $18. However, a positive sign is that the bulls have not given up much ground from the 50-day SMA. This suggests that the traders may be holding on to their position anticipating a break above the resistance. If that happens, the DOT/USDT pair could rally to the overhead resistance at $23 where the bears may again pose a stiff challenge. The flattish 20-day EMA and the RSI near the midpoint suggest a range-bound action in the short term. If the price turns down from the 50-day SMA, the bears will try to pull the pair below $16. If they succeed, the pair could retest the critical support at $14. The fo-hour chart shows that the pair has oscillated between $16 and $19. The failure of the buyers to propel the price above the overhead resistance may have attracted profit-booking from short-term traders. That pulled the price to the 50-SMA. If the price rises above the 200-SMA, it will suggest that bulls continue to buy on dips. The buyers will then again try to drive the price above the overhead resistance at $19. If they manage to do that, the pair could rise to $20 and later make a dash toward $23. Conversely, a break and close below the 50-SMA may increase the possibility of a drop to the strong support at $16.

Polkadot (DOT) bounced off $32.21 on Nov. 28, indicating that bulls are attempting to defend the strong support at $32. The recovery is facing selling at the 100-day SMA ($37.16) suggesting that bears are selling on relief rallies. If the price turns down from the current level or the breakdown level at $38.70, the bears will attempt to extend the decline. A break and close below $32 could start the next leg of the down move that may reach $26. The 20-day EMA ($40.41) continues to slope down and the RSI is in the negative zone, suggesting that bears have the upper hand. The bulls will have to push and sustain the DOT/USDT pair above the breakdown level at $38.70 to invalidate the bearish view.

Polkadot (DOT) soared and broke above the overhead resistance at $49.78 on Nov. 1. The RSI broke above the downtrend line, invalidating the negative divergence. This suggests the resumption of the uptrend. The bears tried to pull the price back below the breakout level on Nov. 6 but the long tail on the candlestick shows that bulls are buying on dips. The rising moving averages and the RSI near the overbought zone indicate the path of least resistance is to the upside. If bulls thrust the price above $55.09, the DOT/USDT pair could rally to $63.08. The bears may have other plans as they will attempt to sink the price below the breakout level at $49.78. Such a move will suggest a lack of buyers at higher levels. A break and close below the 20-day EMA ($46.82) will be the first sign that the bulls may be losing their grip. The pair could then drop to the 50-day SMA ($38.54). The 4-hour chart shows that the pair is rising inside an ascending channel. Although bulls pushed the price above the channel, they have not been able to build upon the advantage. This indicates that the bears are defending this resistance with vigor. The pair rebounded from the centerline of the channel and the bulls will again try to clear the overhead hurdle. If they succeed, the pair may pick up momentum. Alternatively, if the price turns down from the current level or the overhead resistance and breaks below the centerline, the pair may drop to the support line. A bounce off this level will keep the uptrend intact but a break below it will signal a possible change in trend.

Polkadot (DOT) soared and broke above the overhead resistance at $49.78 on Nov. 1. The RSI broke above the downtrend line, invalidating the negative divergence. This suggests the resumption of the uptrend. The bears tried to pull the price back below the breakout level on Nov. 6 but the long tail on the candlestick shows that bulls are buying on dips. The rising moving averages and the RSI near the overbought zone indicate the path of least resistance is to the upside. If bulls thrust the price above $55.09, the DOT/USDT pair could rally to $63.08. The bears may have other plans as they will attempt to sink the price below the breakout level at $49.78. Such a move will suggest a lack of buyers at higher levels. A break and close below the 20-day EMA ($46.82) will be the first sign that the bulls may be losing their grip. The pair could then drop to the 50-day SMA ($38.54). The 4-hour chart shows that the pair is rising inside an ascending channel. Although bulls pushed the price above the channel, they have not been able to build upon the advantage. This indicates that the bears are defending this resistance with vigor. The pair rebounded from the centerline of the channel and the bulls will again try to clear the overhead hurdle. If they succeed, the pair may pick up momentum. Alternatively, if the price turns down from the current level or the overhead resistance and breaks below the centerline, the pair may drop to the support line. A bounce off this level will keep the uptrend intact but a break below it will signal a possible change in trend.

Polkadot (DOT) has been gradually moving higher toward the overhead resistance at $38.77. The RSI has broken out of the downtrend line and the 20-day EMA ($32.15) has started to turn up, indicating an advantage to buyers. If bulls thrust the price above $38.77, it will invalidate the head and shoulders pattern. The failure of a bearish setup is a bullish sign as it may trap the aggressive bears who then try to cover their positions, resulting in a short-squeeze. The DOT/USDT pair could then start its journey toward $49.78. Alternatively, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, the pair could drop to $28.60. A bounce off this support could keep the pair range-bound for a few days. The bears will have to pull the price below the neckline to signal their supremacy. Both moving averages are sloping up and the RSI is in the positive territory, suggesting that buyers are in control. The pair could drop to the 20-EMA, which is likely to act as a strong support. If the price turns up from this support, the bulls will try to push the pair to $38.77. This level may again act as a stiff resistance but if bulls do not give up much ground from it, the possibility of a break above it increases. Conversely, if bears pull the price below the 20-EMA, the pair could drop to the 50-SMA. A break and close below this support could result in a decline to $31 and then $29.

Polkadot (DOT) broke below the 50-day SMA ($27.71) on Sept. 21 but bulls bought the dip aggressively and reclaimed the level on Sept. 22. That seems to have trapped the bears, resulting in a short squeeze. The DOT/USDT pair has reached the 20-day EMA ($31.42) which is an important level to watch out for. If buyers drive the price above this resistance, the pair could rise to $35 and then retest $38.77. Conversely, if the price turns down from the 20-day EMA, it will suggest that traders are selling on rallies. The bears will then make one more attempt to pull the price to the Sept. 7 intraday low at $22.66.

Ethereum’s consensus mechanism forces all nodes to validate all transactions. In contrast, the Polkadot blockchain breaks up batches of new transactions into many shards and processes them in parallel. The blockchains plugging into the network can have very different rules of operation, transaction processing, and capabilities, giving the whole system much more flexibility. Polkadot is trying to achieve scalability without decreasing the network’s security. This famous problem known as the “blockchain trilemma” was elucidated by the founder of Ethereum himself, Vitalik Buterin. In contrast with Ethereum’s single blockchain design, Polkadot has many different blockchains called parachains that plug into one main blockchain, also referred to as the Relay Chain or layer 0. Similar to the hub and spoke model commonly used in airport design, connecting disparate blockchains via the central Relay chain establishes a way to send messages and transactions across multiple blockchains without slowing down traffic on the transaction highway. Layer 0 refers to the concept that Layer 1 protocols such as Bitcoin and Ethereum could be spokes and Polkadot could be the hub. For example, the NFT project Bit.Country is a Substrate-based blockchain that uses a bridge with Ethereum. This enables assets to flow between Ethereum and metaverses built on Bit.Country’s TEWAI blockchain.

The crypto market continues to amaze: suddenly the little-known Polkadot (DOT) token burst into the TOP-5 of cryptocurrencies by market capitalization. This is a Swiss project that aims to create a functional and user-friendly decentralized web by connecting different blockchains. There are already similar projects in the list of leading coins. Such a rapid appearance (after the denomination of the token) came from 2172 places in the CMC rating. Earlier it was reported that CMC is verifying the stated data, apparently, the result for Polkadot was positive. Nevertheless, for sure in the near future, participants in the crypto market will nevertheless carefully double-check the data from the project.