Polkadot Price Analysis: 20 March

Polkadot’s growth has been massive in 2021. With a single-digit start to the year, the asset’s value has hit $39.38 and has been rising. At the time of press, Polkadot was heading towards a bullish journey with a market capitalization of $35.93 billion.

Polkadot four-hour chart

Source: DOTUSD on TradingView

The above chart of Polkadot was indicative of the large jumps it has noted in the crypto market. Although other alts also rallied, Polkadot’s strong fundamentals have pushed it to new heights.

Owing to such a strong trend, DOT may see its price surge to the resistance at $41.39.

Reasoning

The Bollinger Bands diverged which meant that the market has already become volatile. The price has been pushing through the Bollinger bands, while the signal line remained under the candlesticks. Whereas the 50 moving average was also tangled with the signal line under the candlesticks suggesting the uptrend of price.

However, this increased volatility has pushed the digital asset close to the overbought zone. The RSI has been highlighting this trend and although the asset has not breached above the overbought zone, it was close at 64.

Meanwhile, the MACD indicator was noting that the momentum in the market was bullish. However, the growing gap between the MACD line and the signal line could indicate a price swing making its way to the DOT market.

Crucial levels

Entry-level: $39.59
Take Profit: $41.20
Stop level: $38.98
Risk to Reward: 2.69

Conclusion

The current Polkadot chart has been indicating a bullish push making its way in the market, however, the overly bullish market may flip the trend in the market. The bullishness may help the price presently but may lead to a strong correction.