Digital Art of Polkadot Logo Symbol. Cryptocurrency Futuristic 3D Illustration. Crypto background
Polkadot price set another all-time high yesterday, within 24 hours of the previous one. However, the rise was marginal this time, with DOT adding less than $1 to set the previous ATH to hit $55. At the time of writing, it had corrected downward to $52.93 and was 1.78% below its level 24 hours earlier. Nonetheless, the asset has got positive market sentiment around it and could potentially register new ATH in the next few days.
In particular, DOT is likely to derive its fuel from the upcoming auction of its parachains. Parachains are individual blockchains that allow developers to launch their own projects on the Polkadot network. Many developers are likely to be attracted to the unique functionality framework of Polkadot. Once a project gets the approval of the Polkadot Council, developers will then be able to crowdfund for them much easier from the Polkadot ecosystem.
Polkadot price is riding on a strong market momentum that could propel the price higher. The MACD line crossed above the signal line four days ago, which makes a strong case for further gains. However, the near-term resistance is likely to be at $55.0.
A look at the RSI shows that DOT rarely ever goes past the 73 mark on the RSI scale before a reversal. Considering that the current momentum is still strong, sideways action looks more likely. However, if the momentum weakens, the price could go down to find the first support at $49.86. If it breaches that point, the next support is likely to be at $44.47.