Polkadot price rally came to a halt on Friday and the asset seems to be consolidating. DOT made marginal gains early on Monday, as it traded at a 4-hour high price of $52.29. At that price, DOT/USD is about 4.9% off the ATH, which is well within reach in the near term, based on the recent price rally. Based on the current price, Polkadot has gained about 57% over the last 30 days, out of which 22% have come from the last seven days.
Parachains could sustain long-term uptrend
As previously reported, Polkadot’s latest price surge has been mainly driven by the upcoming parachains auctions. With the auctions slated for Thursday this week, we are likely to see further gains by DOT. This week’s will be the first five of 10 auctions lined up between November 2021 and March 2022. Therefore, if the first auctions prove successful, then they could set the stage for long-term DOT price uptrend.
Technical analysis for Polkadot price
Polkadot price is consolidating, driven by a reduced buying momentum. The RSI has reduced from 72 to 67 over the past 4 days. Nonetheless, at 67, the RSI signals that the momentum is still strong enough to support another rally. If that happens, then the near-term first resistance is likely to come at $53.44. Beyond that point, the next resistance will be the ATH at $55. However, if the momentum weakens significantly, the first support could be established at $49.94. If it breaches that point, it could signal a downward reversal, with the next support likely to be at $44.87.