Polkadot has recorded an impressive surge recently and it can gain support at $7. It has been eyeing a breakout for the past few days, especially after it has seen the price movement of the crypto market on Monday, January 11, 2020. As it can gain support at $7, a rebound took place within the descending parallel channel.
Polkadot has faced a major challenge at the upper boundary and there, it strolled upwards. Along with this, 50 Simple Moving Average was recorded at the 4-hour chart. Now the momentum doesn’t seem to stop as the token is increasing massively, which has even dominated recent Bitcoin’s recovery.
Polkadot Is About to Hit $12
After gaining support at $7, Polkadot can shatter several other resistance levels, which includes $10 and $11. It is now preparing to overcome another hurdle, which is $12 and is expecting to reach this level very soon. As soon as it will be able to pass the resistance level at $12, it will move towards a higher target of $15.
Currently, the Relative Strength Index is in the overbought region. Any asset can easily rally in this region but there is a huge risk of a drastic correction.
High Trading Volume Indicated
According to several market analysts, Polkadot’s trading volume is increasing to a very great extent, and many times, such huge trading volumes indicate a completely bearish signal. Currently, the bulls seem to establish a higher support level. In case, the correction takes place, it will be at the $10 level. If the resistance level goes below this, then the token will again enter into the descending channel. Nothing could be said at the moment as a lot has been happening in the crypto market and this token is showing mixed signals, which might make different circumstances.