The first thing that comes to a buyer’s mind hearing of Polkadot is something unique with no beginning or end. The purpose of this blockchain is to create a network of specialized and leading blockchains for improved interoperability across different chains to work toward a decentralized internet of blockchains, preserving the grounds for Web 3.0 development.
Polkadot cryptocurrency is all set to move towards new highs, but fundamental and strong development data needs to incite the buyers towards this action.
Projecting itself as a layer 0 metaprotocol, Polkadot is capable of updating its codebase without requiring a hard fork. Since this blockchain functions on the whims of its governance voting, the power to change its codebase lies in the hands of DOT holders.
This blockchain currently holds the 10th spot with a market capitalization of $8,321,338,813 and close to 90% liquidity of its DOT token. The price action has failed to project this blockchain toward the heights it is reeling for. Visit here to know if DOT will be successful in reaching its previous highs or not.
As a cryptocurrency, the performance of DOT tokens in recent times has been disappointing. While testing an immediate resistance based on price action takes time, the time required to fall back to the support levels is much less, creating the sensation of panic selling. At times, the Polkadot outlook had created a huge buzz, but the reasons behind that buzz hadn’t yet been realized till date.
DOT’s buying sentiment is once again gaining momentum with a lesser transaction volume. In terms of technical indicators, RSI is showing an ongoing buying rally, and MACD just marked a bullish crossover pattern that could work wonders for its future price possibilities.
The support level of $5.71 developed in January 2021 hasn’t been breached even once, but the buying strength hasn’t been strong enough to challenge the immediate moving average of 100 EMA. So far, DOT is maintaining its second positive close consecutively but with lesser traction volumes. The positive outcome and the buying strength required for the same are limited, which could push this token towards consolidation.
Polkadot’s action on weekly charts notes just two negative weeks in the last nine weeks. Unlike other cryptocurrencies, DOT consistently attempts to surpass the previous rejection level, marking two positive candles in recent days.
The resistance or long-term targets remain at $10.88, while the support at $5.71 is going positive. RSI and MACD indicators both project a consolidative movement in a longer duration. The outlook for Polkadot can slowly move towards positivity, but it has closer relations with the fundamental developments over its buying sentiment.