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Polkadot Price Analysis – DOT Breaks Resistance At Symmetrical Triangle And Surges Toward $20 – New ATH Incoming?

Key highlights:

  • Polkadot is up by a robust 8.2% today as the cryptocurrency attempts to break the $25 resistance.
  • The coin is still trading inside its symmetrical triangle pattern and quickly approaches the apex, where a breakout can be expected.
  • Against Bitcoin, DOT failed to break resistance at ₿0.0007 earlier in the month but is currently holding above a rising trend line.

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Polkadot price $24.23
Key DOT resistance levels $20, $20.45, $21.36, $22, $23.35
Key DOT support levels $19.27, $18.68, $18, $17.05, $16

*Price at the time of writing

DOT is up by a strong 8.2% today as the coin continues to trade inside its period of consolidation in a symmetrical triangle. A break above $25 would indicate a bullish breakout of this consolidation and is likely to kickstart a bull run back toward the May highs again.

Polkadot has an interesting week ahead of itself as they are ready to auction off the Parachair test network, Kusama, on June 15th. Kusama and Polkadot are attempting to create an interoperable network with 100 parachains plugged into their Relay chain.

The parachains, or parallel blockchains, will be the host for dApps that can interact with one another through the relay chain itself. The first auctions will occur on Kusama, which has already launched a parachain called Statemine.

Once the Kusama parachains have been auctioned off, we can expect the auctions to also begin for the Polkadot network itself. With 100 parachains on each network, once all slots have been auctioned, there should be 200 dApps that are totally interoperable with each other.

This is a great step forward in the Poldaot exosystem, which launched last year after Gavid Wood, the founder, activated the mainnet after years of development.

DOT is now ranked in the 8th position as it currently holds a $21.31 billion market cap value.

Let us look at the market and highlight some potential areas of support and resistance for DOT.

Polkadot Token Price Analysis

What has been going on?

Taking a look at the daily chart, we can clearly see the symmetrical triangle that has formed after the mid-May market capitulation. The cryptocurrency had dropped from its high of around $50.55, and it continued to fall beneath the 200-day MA at $25 until support was found at $17.10 (.886 Fib Retracement).

It rebounded from this support toward the end of May and started to form the triangle in June after failing to break resistance at around $27. Since then, it has dropped lower but found support at around $21.40 (.5 Fib Retracement) yesterday and rebounded from the lower boundary of the triangle.

DOT price short term prediction: Neutral

As DOT is trading inside a symmetrical triangle pattern, we can consider the market neutral right now. The breakout of the triangle would determine the next direction for the market. DOT would need to break $30 (100-Day MA) to turn bullish in the short term. On the other side, a break beneath $20 would turn the market bearish in the short term.

If the sellers push lower, the first level of support lies at the lower boundary of the triangle. This is closely followed by support at $21.40 (.5 Fib Retracement). If the bears continue to drive DOT beneath $20, additional support is located at $19.58 (.618 Fib Retracement), $17.10 (long term .886 Fib Retracement), $15, and $13.71 (May lows).

Where is the resistance toward the upside?

On the other side, the first resistance is located at the upper boundary of the triangle. This resistance is further bolstered by the 20-day MA. Above the triangle, resistance is expected at $27.71 (bearish .382 Fib Retracement), $30 (100-day MA), $32.10 (bearish .5 Fib Retracement), $36.43 (bearish .618 Fib Retracement), and $40.

What has been going on?

Against Bitcoin, DOT met resistance at ₿0.000966 (1.618 Fib extension) in May and started to head lower from there. During the mid-May market sell-off, DOT fell beneath the support at the 200-day MA at around ₿0.00055 and continued lower until support was found at ₿0.000511 (.618 Fib Retracement).

It rebounded from this support toward the end of May and started to climb higher. As June started to trade, DOT spiked higher into resistance at ₿0.000738, provided by a bearish .5 Fib Retracement level, and could not overcome the level.

From there, it started to drop lower as it fell beneath the 100-day MA at ₿0.00065 yesterday to reach the current ₿0.000632 level today. This support is provided by a rising trend line from the May lows.

DOT/BTC price short term prediction: Neutral

The break beneath the 100-day MA level has turned DOT neutral. To start to turn bullish in the short term, DOT would need to provide a clean break above the current resistance at ₿0.000739 (bearish .5 Fib Retracement level).

On the other side, DOT would turn bearish if it was to fall beneath the May support at ₿0.000511 (long term .618 Fib Retracement level).

If the sellers push lower, the first support lies at the rising trend line. This is followed by ₿0.0006, ₿0.000589, and ₿0.00056 (200-day MA). Added support lies at ₿0.00055, ₿0.000517 (long term .618 Fib Retracement), and ₿0.0005.

Where is the resistance toward the upside?

On the other side, the first resistance lies at ₿0.00065 (20-day MA and 100-day MA). This is followed by ₿0.000686 (bearish .382 Fib Retracement), ₿0.0007, and ₿0.000738 (bearish .5 Fib Retracement).

Additional resistance lies at ₿0.000791 (bearish .618 Fib Retracement), ₿0.0008, and ₿0.00085.

Previous Technical Analysis

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