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. Polkadot was founded by the Web3 Foundation, a Swiss Foundation founded to facilitate a fully functional and user-friendly decentralized web, as an open-source project. DOT is the native governance token of Polkadot. It is a sharded multichain network, meaning it can process many transactions on several chains in parallel (“parachains”). This parallel processing power improves scalability.
DOT opened on 7 October 2021 at $32.23. The week witnessed an uptrend. It closed on 13 October 2021 at $41.62 with a premium of 28.77% across the week.
The previous week started with an uptrend. A slight resistance was seen at $36.89, during which the DOT price chart took support at $32.98. The price continues to be on an uptrend since then.
The current trading price is $42.19, which is up by 0.99% as compared to yesterday. This is a bullish signal, meaning that the uptrend is likely to continue.
OBV is showing an uptrend as well. The buying pressure is dominating the selling pressure. This is a bullish signal and traders may take a long position.
RSI is showing is moving very close to the overbought region. It is currently at 69.75%. This is a bullish signal, but a trend reversal may be seen in DOT if it enters the overbought region. Thus, traders may wait to see the direction of the trend before making a call based on this.
MACD, being a lagging indicator, is confirming the last week’s uptrend. The distance between the fast and slow lines increased consistently, as seen in the histogram. Both the lines are in the positive direction and there is no divergence from the price chart.
Fib retracement shows that the DOT price has successfully crossed the fib target at $38.77. The next fib target is at $46.97.
Thus, the traders may take a long position here as the indicators are bullish. Target can be set at $46.32, with the stop-loss at $36.89.