Polkadot had garnered attention during the bull run of 2021. However, the performance of the cryptocurrency after the bull run was lackluster. The recent price movements are indicating DOT coin may, once again, embark on a strong uptrend. DOT coin has begun an uptrend although it has yet to be confirmed. At the time of press, Polkadot stands at a price level of $18.74. The price of cryptocurrency has increased by 8% in the past twenty-four hours. In the past week, Polkadot grew by 30%. While the daily trading volume has declined 5%.
Technical analysis
The market outlook for Polkadot is bullish due to the recent uptrend. Eleven of the total twenty-six technical indicators stand at a bullish signal. Five indicators of the rest are giving out a bearish signal of the sell while ten indicators stand at a neutral position. Both the oscillators and moving averages are bullish.
Polkadot has started off the formation of an inverted head and shoulder formation. The bullish pattern suggests a price target of $26 for the cryptocurrency. However, in the upcoming timeframe, the bullish momentum is expected to end as DOT crypto will be completing the bearish right shoulder. The support level at $14 is expected to be tested on the formation of the right shoulder. Afterwards, the bulls will take over – if the bullish pattern is validated. The neckline lies at $18.89 and a break out above the level will validate the H&S formation.
Polkadot future outlook
Polkadot facilitates cross-chain transfers and it is this unique offering which has been responsible for much of the hype around the cryptocurrency. DOT’s future projections are bullish. According to Wallet Investor, Polkadot is expected to be trading at $46 in a year’s time. Digital Coin Price also estimates the $28 mark to be crossed by the end of 2021. The long-term projections for cryptocurrency are also optimistic.
