Why Is Polkadot Exploding While Bitcoin And Others Are Trading Flat Today?

Polkadot DOT/USD is rallying higher Wednesday, amid a cryptocurrency market that is trading pretty flat. Polkadot posted an announcement on its website stating it's was ready to launch parachains on its app.

The crypto is blowing past other popular cryptocurrencies in terms of percentage including Dogecoin DOGE/USD, Ethereum Classic ETC/USD, Ethereum ETH/USD and Bitcoin BTC/USD.

Polkadot was up 18.49% at $41.59 at last check.

Polkadot Daily Chart Analysis

• Polkadot is nearing resistance after having a very green day today, and trading in what technical traders would call an ascending triangle pattern.
• The $45 level is an area of resistance from previous highs. The crypto has been able to find support near the higher low trendline in the past. These levels may hold in the future until one is broken.
• The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto looks to have had recent bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been pushing higher since the announcement and sits at 70. This is right on the border of the overbought area, indicating that there is much more buying pressure than selling pressure.

What’s Next For Polkadot?

Bullish traders would like to see the crypto continue to move higher and break out of the resistance level. Bulls are then looking for a period of consolidation above the $45 level for a possible further bullish push.

Bearish traders are looking for the crypto to drop down and break below the higher low trendline. This could cause a possible change in trend. Bears would also like to see the price fall below the moving averages for a possible change in sentiment.