Polkadot is just near the crucial $5 mark, trading at $4.93 as it gained 6.15% in the last 24 hours. The altcoin’s price analysis shows a bullish run as DOT has gained 10.81% in the past week. If it manages to cross the $5 mark, a bigger uptrend could follow.
But analysts are of the opinion that the current rally may be short lived. Polkadot may see another downtrend if its unable to break past the resistance point. Its price analysis on the 24-hour candlestick chart is forming an ascending triangle pattern since January 2. DOT has risen more than 10% to be at its current level.
Moreover, the uptrend has lifted the 24-hour relative strength index. But it remains in the under-valued region. This may be an area of concern as the relative strength index needs to move above the 45 mark to maintain the bullish momentum. However, if the relative strength index remains at low to mid-level, traders may sell on a large scale, and this would trigger a bearish trend for the altcoin.
Overall, DOT has been moving above the 9 and 21-day moving averages, with the crucial 50-day exponential moving average at $4.60. The moving average convergence divergence suggests a bullish divergence in place on the short-term to complement the price trend.