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With the tremendous increase in underlying bullishness, DOT coin price is ready to start a bull run above the $50 mark shortly.
After the project announced a date for its parachain auctions, Polkadot's token soared to $40 for the first time in five months. This is a step closer to the real-world launch of its multi-blockchain framework.
Parachains, which are layer 1 blockchains running in parallel, can send data to one another. They provide a multichain architecture that connects multiple networks to Polkadot. They can also enable layer 1 protocols such as bitcoin and Ethereum to connect seamlessly.
Let us now look at the comprehensive technical analysis of Polkadot cryptocurrency.
Past Performance of DOT
Due to the announcement of a release date for parachain auctions, the DOT coin price gained more than 20% with increased buying pressure. Thus, resulting in the formation of a bullish engulfing candlestick.
Source - Tradingview
DOT Technical Analysis
As of writing, DOT cryptocurrency was at $42.42. The cryptocurrency has also increased 23.9% over the past week. This indicates a dramatic rise in buying pressure, supported by an increase of 5% in intraday trading volume.
The pivot points suggest that the DOT coin price could face resistance at the $46 or $55 mark upon trend line breakout. If the trend line breakout is bearish, the price could find support at the $38 or $30 mark.
MACD and signal lines are both above the zero line on the daily chart. The fast line is also above the slow line, indicating that the bulls are in control of the trend. It is, therefore, a buy signal.
The RSI indicator trades just below the overbought border at 66.5% on the daily technical chart. It indicates a boom of bullishness.
As bullish power grows, the ADX indicator predicts a rise in price trend momentum.
Current Trend
According to the Polkadot technical analysis, the situation suggests a possible bullish breakout of DOT crypto. Price action is the increase in social value with long-bullish candlesticks. One can therefore expect a bull market above the $46 mark.