Polkadot Breakout Analysis – DOT Pumps +30% in a Single Day with Active Uptrend
Polkadot DOT is trading in uptrend here like many other altcoins. The Cryptocurrency DOT just went up +30% in a single day by breaking a Falling wedge pattern with strong buying volume and surges over +52% in a week.
What is Polkadot?
Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens, thereby making a wide range of blockchains interoperable with each other.
The Polkadot protocol connects public and private chains, permissionless networks, oracles, and future technologies, allowing these independent blockchains to trustlessly share information and transactions through the Polkadot relay chain.
DOT Quick Stats
SYMBOL: | DOT |
Global rank: | 5 |
Market cap: | $14,510,797,086 AUD |
Current price: | $16.08 AUD |
All time high price: | $18.48 AUD |
1 day: | +30.38% |
7 day: | +42.96% |
1 year: | +137.81% |
DOT Price Analysis
At the time of writing, DOT is ranked 5th cryptocurrency globally and the current price is $16.08 AUD. This is a +42.96% increase since 8th January 2021 (7 days ago) as shown in the chart below.
After looking at the above 4-hour candle chart, we can clearly see that DOT was trading inside the falling wedge pattern on the DOT/USDT pair. The first resistance was on the $13.05 AUD price levels which DOT broke with a strong bullish trend buying volume and is now heading towards the next all-time high price. Seeing that many altcoins are waking up bullish this week, DOT is likely to continue to increase in the uptrend.
“The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge.”
What do the Technical indicators say?
The DOT TradingView indicators (on the 1 day) mainly indicate DOT as a buy, except the Oscillators which indicate DOT as a neutral.
So Why did DOT Breakout?
The recent rise in Bitcoin over +300% since the halving in May and then the suggested start of the Altcoin season could have contributed to the recent breakout. Another reason for this sudden pump in price could be the whales secretly buying DOT for the next Altcoins rally & it could also be contributed to some of the recent news of Integration Announcement.
Recent DOT News & Events:
- 17 July 2020 – HBTC Listing
- 17 July 2020 – Huobi Listing
- 21 August 2020 – Polkadot Redenomination
Where to Buy or Trade DOT?
Polkadot has the highest liquidity on Binance Exchange so that would help for trading DOT/BTC or DOT/USDT pairs. However, if you’re just looking at buying some quick and hodling then Swyftx Exchange is a popular choice in Australia.