Polkadot records double-digit gains as it inches closer to $10

Polkadot (DOT) managed to outperform the vast majority of the crypto market by posting double-digit gains in the past 24-hours, inching closer to $10.

Polkadot has, after a major news-related price pump, started descending rapidly as a response to Bitcoin’s move down. However, Polkadot bulls managed to take over the market once again and continue the move up. DOT/USD has pushed the price up just over 20% in the past 24 hours.

Fundamental analysis: is Binance behind everything?

Polkadot is a next-generation blockchain protocol that aims to connect multiple specialized blockchains into one unified network. It was founded by the Web3 Foundation, namely Dr Gavin Wood, Peter Czaban, and Robert Habermeier. The idea was to design a web that returns control to individuals and takes it away from the internet monopolies. The project has a unique way of tackling the problems that all cryptocurrencies have, and is proud to call itself scalable, able to specialize, self-governed, and easily upgradeable.

DOT’s overall outlook is extremely bullish due for several fundamental reasons, with most of them being tied to the Binance exchange. Firstly the cryptocurrency announced that Binance would support the project with $10 million, which caused a massive boost in its price. On top of that, Binance exchange’s home page replaced the ETH/BUSD pair with the DOT/USD pair on their main page for a while, giving Polkadot a major boost in popularity and exposure. The combination of these two factors brought Polkadot’s price from just slightly above $5 way above $10.

DOT managed to gain 6.59% week-over-week. When compared to other cryptocurrencies, BTC scored a loss of 15.46%, while ETH managed to lose 14.22% over the same period.

At the time of writing, DOT/USD is trading for $9.9, which represents month-over-month gains of 110.02%.

DOT/USD technical analysis

Polkadot (DOT) broke out of its long-term trading range on 28 Dec. Bulls, encouraged by the recent news of Binance “joining the team,” started buying Polkadot pushed its price from a little above $5 to over $10. However, Bitcoin’s pullback ultimately caused DOT/USD to follow it to the downside, causing its price to retrace. Taking a look at the daily chart, we can see that the 21-day average has played a major role in the current trend reversal, while the 50% and 61.8% Fib retracements played a part as well. After creating a Doji candle yesterday, Polkadot started pushing towards its recent highs, which brought it to the current position.

DOT faces a strong resistance zone after around and a little above $10. On the other hand, the 21-day exponential moving average has shown to be an immense support level.

DOT’s RSI on the daily time-frame has slowly left the overbought area after it started descending, but is on the increase once again. Its RSI currently neutral, with a value of 62.81.

DOT’s hourly time-frame is slightly less important for the current outlook when compared to the daily time-frame. However, we can use it to see the current price increase a bit more clearly. It’s evident that the price responded to both the 21-hour and 50-hour EMAs, meaning that day-traders should take into account these two indicators into account when forming a trade idea. Another thing to note is that the 21-hour EMA has crossed over the 50-hour EMA, posting a bullish signal.