Polkadot Price Analysis: March 20th

Polkadot’s growth was massive in 2021. With a single digit start to the year, the value of the asset has reached and increased $ 39.38. At press time, Polkadot was on a bullish journey with a market cap of $ 35.93 billion.

Polkadot four hour chart

Source: DOTUSD on TradingView

Polkadot’s chart above was an indication of the big leaps it has seen in the crypto market. While other alts have rallied as well, Polkadot’s strong fundamentals have hit new heights.

With such a strong trend, DOT could see its price rise to the USD 41.39 resistance.

argumentation

The Bollinger Bands broke up, which meant that the market has already become volatile. The price pushed its way through the Bollinger Bands while the signal wire stayed under the candlesticks. While the 50 moving average was also tangled with the signal line under the candlesticks, suggesting an uptrend in price.

However, this increased volatility has brought the digital asset close to the overbought zone. The RSI highlighted this trend, and while the asset did not cross the overbought zone, it was close to 64.

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

Crucial Levels

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

Conclusion

The current Polkadot chart shows an upward trend in the market. However, the overly bullish market could reverse the trend in the market. The upside move may currently improve the price but it could lead to a strong correction.

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