Polkadot’s (DOT) price posted week-over-week gains of 50% as it inches closer to the $50 mark. However, is DOT poised to hit $50 or will it retrace in the short-term?
Fundamentals and past price performance
Polkadot has experienced a major price increase in the past week, mostly due to its fundamentals. The overall market sentiment around the cryptocurrency is extremely bullish as the development team rolled out the Rococo upgrade. This update solved many bugs, introduced a couple of features, and added seven parachains, namely: Tick, Trick, Track, Kiltprotocol, Plasm_Network, polkaBTC, and the AcalaNetwork.
#Rococo Development Recap – February 19, 2021
Key Updates
• The Rococo V1 branch was updated and the chain restarted on February 12th. Restarting allows us to iterate faster by implementing changes that would normally require writing migration code.— Polkadot (@Polkadot) February 19, 2021
DOT managed to post week-over-week gains of 49.03%. When compared to other cryptocurrencies, DOT outperformed both BTC’s gain of 18.18% and ETH’s 6.96% loss.
At the time of writing, DOT is trading for $38, which represents a price increase of 127.84% when compared to the previous month’s value.
DOT/USD daily chart price
Polkadot (DOT) seemingly ended (at least briefly) its uptrend after hitting the $42.22 mark on Saturday. With its price currently in a healthy retracement mode, very few people actually believe that this is the top for DOT.
DOT faces a strong resistance zone at its current all-time highs, and will need a boost in volume and buying power to pass it. On the other hand, its closest support level sits at the 23.6% Fib retracement level of $33.46.
DOT’s RSI on the daily timeframe is in the overbought territory for over a week now. However, with its value currently descending, the RSI is on track to reenter the regular trading range. Its current value is sitting at 76.88.
DOT/USD hourly chart price
DOT’s hourly time-frame is slightly less bullish, as the cryptocurrency is currently retracing. Polkadot is, at the moment, fighting with both the 21-hour and 50-hour EMAs on reduced volume.
However, whether the cryptocurrency wins or loses this short-term clash, the overall sentiment remains extremely bullish, and DOT is poised to hit $50 very soon, according to various analysts.