Polkadot reached a double-top around $38 one month ago, the highest level since last January. With significant selling pressure over the past three days, it is now trending lower. But, buyers have stepped in to keep the bodies of the daily candlesticks above the Tenkan-Sen line.
DOT might retest its ATH in May if it can muster up substantial volumes as it approaches the 78.6% Fibonacci level. DOT is up 18.34% over the last 24 hours as of the time of writing and is trading at $41.36.
Polkadot Displays a Significant Support
After the Polkadot reset at its 38.2% Fibonacci level, it began an upward run within a parallel channel. DOT has now surpassed the 61.8% Fibonacci level after having exceeded the Visible Range.
Within this region, the range between $41.3 and $50 offered little to no resistance. In this context, expect bulls to gain control of the 78.6% Fibonacci level shortly. Overcoming the critical pricing barrier is key, however, before the price could achieve this outcome.
At $38.6, DOT’s bearish double top would provide investors hoping to profit from this current bull run a juicy take-profit. At this point, investors will have more than 50% profits to draw from after making a profit. A decline to the 50% Fibonacci level may be triggered by the same.
Why the Price is Up
Polkadot announced yesterday that it would soon start launching its parachains. The entire Polkadot community and ecosystem have been anticipating this day for quite some time. In essence, the project’s parachains will work as side chains that operate alongside the main chain.
Furthermore, the on-chain governance team has already proposed a schedule and auction process. In this proposal, the first round of five auctions would occur with one auction every week, followed by the second round of six auctions every two weeks. The auctions on Polkadot will assign parachain slots for a total of 96 weeks (consisting of eight 12-week lease periods), while Kusama’s are for 48 weeks.
The developments on the platform have attracted new investors and increased the activity of the current investors on the platform.
What is Next?
DOT enthusiasts expect to create a new height at $38.6 on the back of rising bullish momentum. When bulls effectively negotiate past a double top configuration and the 78.6% Fibonacci level, DOT would undoubtedly remain in a prime position to retest its May ATH.
If DOT overcomes this scenario while minimizing losses, investors expect its bull run to continue. For the following 24-hour period, the exchange price of Polkadot might reach anywhere between $39.3 and $42.2.
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