Polkadot’s DOT is cooling after a 20% weekly surge
The cryptocurrency could slide back to $8 as most cryptocurrencies correct
Technical indicators suggest that bullish momentum is underway
Cryptocurrencies are taking a breather after recent recoveries. Polkadot’s DOT/USD is one such cryptocurrency, although it is much of a consolidation. At press time, DOT was marginally up 1.77% in 24 hours. However, the total gains in the week are among the highest at 20.79%. Nothing prevents a correction for DOT, but we believe the price will shoot again.
It’s a quiet year for Polkadot’s DOT. The cryptocurrency topped $55 last year but now trades at merely $8.50. With recent gains, one of the key speculations is whether DOT will reclaim its former self. We find it might, but this could take a while.
DOT has already shown the enthusiasm to climb again. It happens, thanks to turning $8, the previous resistance, into support. We see the $8 level as the reference zone for buyers. A retracement is an opportunity to buy, and it’s already happening.
Moving average crossover suggests a bullish moment for DOT
Source – TradingView
Technically, the 14-day moving average moved above the 21-day moving average for DOT. That confirmed a bullish outlook as the price surged above the $8 resistance. Another bullish indicator is the MACD. The MACD line is yet to break below the moving average since June. That suggests that buyers accumulated DOT as it bottomed at $7.98 and are still relentless.
On a technical snapshot, DOT is bullish but could correct up to $8.0. For investors who bought at the bottom price, the token is still a hold as upside potential remains. New investors can consider buying lower.
Polkadot is bullish, but a correction is imminent. Moving averages and MACD indicators support a further rise. Investors should take advantage of a potential retracement to buy the token.