Polkadot positive factors 75% in a single week — However can DOT value attain $20 subsequent?

Bitcoin (BTC) has made important strikes already this yr however altcoins are catching up. As soon as Bitcoin’s value begins to stabilize, the market atmosphere turns into higher for altcoins to start their run. 

One of many strongest performers in 2021 is Polkadot, as this cryptocurrency has been making new all-time highs day in, day trip. Polkadot’s value rallied by 85% in 2021 and 75% up to now seven days, surpassing XRP in market capitalization.

DOT value eyes $20 or increased after this rally

DOT/USDT 1-day chart. Supply: TradingView

The every day chart of Polkadot reveals a rounded backside building all through the final quarter of 2020. Since then, a wonderful help/resistance flip happened on the $4.55 stage, resulting in extra upside.

This upward continuation kicked off with a large rally to $10, after which demand (gray field) held for help and new ranges had been capable of be outlined utilizing the Fibonacci extension.

A kind of areas was discovered at $14.25-14.75, and the second is discovered at $16-17, because the chart reveals.

DOT/USDT 1-day chart. Supply: TradingView

The first query at present is whether or not DOT has completed its present run. If that’s the case, areas of curiosity for help/resistance flips are discovered on the 0.35-0.382 and 0.618-0.65 Fibonacci ranges.

These Fibonacci ranges are sometimes used to foretell the place such corrections will probably reverse course. In Polkadot’s case, these align closely with earlier help or resistance ranges, particularly the $13 and $10.50 areas. That is the place merchants must be looking forward to potential buy-the-dip alternatives.

As soon as once more, Polkadot will most probably solely right when Bitcoin begins to drop considerably. In any other case, Polkadot and lots of different altcoins are at present in place for extra upside.

Nonetheless, if a correction happens and Polkadot bottoms out, new ranges of curiosity might be outlined on the charts for the following impulse transfer. In that case, Polkadot may proceed its surge in direction of $23-24 and presumably even $32-35 at a later stage within the yr.

DOT/BTC approaching important resistance zone

DOT/BTC 1-day chart. Supply: TradingView

The every day chart of Polkadot within the BTC pair reveals a large surge in latest days. Nonetheless, this surge is approaching a major resistance zone.

It’s normal sense and will go with out saying however it’s not suggested to enter a commerce proper as the value strikes into the resistance zone. 

The 0.00045000-0.00047000 sats space is a important space to breakthrough as that will set off one other heavy impulse transfer upwards. If that space breaks and flips for help, continuation is probably going towards value discovery for Polkadot.

Nonetheless, the value will most probably fail to interrupt upward right here. In that situation, a wholesome correction is feasible by way of merchants must be watching the 0.00035000 sats area, but additionally the 0.00031500-0.00032250 zone.

The $15 help stage is important 

DOT/USD 2-hour chart. Supply: TradingView

The two-hour chart reveals a heavy uptrend, however some important ranges should maintain for this rally to proceed.

In that perspective, the earlier excessive at $15 has to maintain help. If that space holds, a renewed rally to $20 or increased is on the tables to happen for Polkadot.

Failing to carry the $15 space for help and a major correction is on the desk. The subsequent areas for help are $12 and $10.75-11.25, which is a correction of 30-40%.

Nonetheless, Polkadot reveals that it has lots of potential for the upcoming yr with one of many greatest surges thus far in 2021. 

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer includes threat. It is best to conduct your individual analysis when making a choice.