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The price of DOT went up closer to $8.00 before slowing down, but will probably increase if bulls keep above $7.00
The price of Polkadot (DOT) has risen by more than 12% in the last 24 hours amid the positive sentiment around the cross chain protocol. CoinMarketCap data also shows that DOT rose more than 45% last week and is currently trading at $7.22 at the time of writing.
The emergence of Polkadot follows two major fundamental Crypto Trader developments, all related to an important cryptomore-trading and trading platform – Binance. It is the optimism resulting from the twin Binance announcements that has catalyzed the upward action and led the bulls to look at the coveted $10.00 level.
Last week, Binance announced that they had set aside a $10 million fund to support projects built in Polkadot. According to a blog post detailing the funding, the main goal is to improve access to decentralized funding (DeFi) for Binance users.
The reaction to the news saw the DOT rise 8.29% at Binance, from $4.71 to $5.12.
The price of the token then soared 28% to see highs of $6.58 on December 28th after the Binance changed to replace the ETH/BUSD currency pair on its home page with DOT/BUSD. The next day, the price of Polkadot jumped 14% higher, with the bulls rising to $8.00.
The DOT/BUSD currency pair also gained, rising by the margins compared to the US dollar.
DOT/USD Price Outlook
The rejection in recent highs saw the price of the token drop to current levels around $7.22. As can be seen on the charts below, the DOT/USD currency pair is facing bearish pressure and could fall below $7.20.
If this happens, the Fibonacci retracement level of 61.8% from a low of $5.00 to a high of $7.82 presents a cushion at $6.76. The 23.6% Fibonacci retraction level ($5.67) and the 50-EMA ($5.12) offer alternative support zones.
On the positive side, if the bulls manage to overtake the 76.8% Fibonacci ($7.23), a decent high could lead them to test the supply zone again around $7.80. Breaking through the next $8.00 barrier with a positive sentiment could put the DOT in course for action near $10.00.
On the 1 hour chart, the price of Polkadot shows a sell signal as suggested by the TD Sequential indicator. The pressure caused bears to try to push down from $7.00 which could result in a drop of 11% to $6.34. As long as prices remain above 100-SMA and the RSI fluctuates above 50, bulls will maintain the advantage.