Polkadot price analysis: DOT nearing $20, up 9% in 7 days

Polkadot price analysis for Feb 4 shows that the DOT token is at a crucial point and just below the $20 price level. The token dropped out of the top 10 cryptocurrencies recently, as per our Polkadot price analysis for Jan 31, 2022. However, the token has reclaimed that position, and it seems that it is aiming to strike a chord in the crypto space. 

The data from CoinMarketCap shows that the trading volume of the token dropped 17.33% in the last 24 hours, followed by a 3.56% rise in the market cap. The data also shows that Polkadot is 65.01% low from its all-time high of $55 witnessed on Nov 04, 2021. As per our previous DOT analysis from Feb 1, 2022, DOT had reclaimed the support of $20 but fell from those levels. 

The daily candle for Feb 4 was initiated at a price of $18.9 and reached a daily high of $19.40. However, they fell to the daily low of $18.7 afterward. At the time of writing, the price of 1 DOT is $19.33. It seems that despite the bullishness of ETH as per our Ethereum price analysis for Feb 4, DOT hasn’t seen equal gains.

Polkadot price analysis on the daily chart

Polkadot price analysis on the daily chart below shows that the accumulation of DOT is gradually rising. This means that if the token continues making higher highs, we will soon see DOT above $20.

Source: TradingView

The RSI indicator on the chart below shows that the line is making higher highs and aims to breach the 50-mark. If the buying pressure continues to surge, we might see DOT at higher prices.

Source: TradingView

Conclusion

To conclude our Polkadot price analysis for the short term, it can be said that investing in DOT right now is a good decision. On the whole, the whole market has been bearish since the flash crash witnessed in October. The market cap of the entire crypto space reached $3 trillion as per a recent report from TheCoinRise.