Polkadot price is set to record its fifth consecutive week of gains despite the mini sell-off that has rocked other major cryptocurrencies. It will be interestingt to see if a take-profit mood sets in in the ensuing sessions.
Fundamentals
On Thursday, Bitcoin price extended its gains; momentarily trading above the crucial level of $24,000. Indeed, it hit a level last recorded on 17th August 2022 at $24,242.41. However, with the US nonfarm payrolls data on investors’ mind, the leading cryptocurrency erased the prior session’s gains on Friday. As at the time of writing, BTC/USD was down by 0.55% at $23,365.32.
As is often the case, Bitcoin price set the pace for other major cryptocurrencies. In a similar trend, Ethereum price- the leading altcoin – was down by 0.48% at $1,636.10 after hitting a 4.5 month high of $1,727.21 in the previous session. Other major cryptocurrencies like Solana, Cardano, and Ripple were down by 0.29%, 0.4%, and 0.63% respectively.
Interestingly, Polkadot price took a different trajectory. As at the time of writing, the cryptocurrency was up by 3.42% at $6.775. Compared to BTC/USD that has risen by about 42% since the beginning of 2023, DOT/USD has had its value increase by 62% during the same time frame.
On the one hand, the Fed’s dovish tilt during Wednesday’s interest rate decision improved the risk appetite and offered support to cryptocurrencies. Even so, investors remain cautious amid recession concerns. With regards to Polkadot price’s unique performance, it is more of a technicals-driven rally rather than a fundamentals one. As such, a take-profit mood will likely set in as the crypto remains subject to curbed gains.
Polkadot price outlook
Polkadot price is at the periphery of the overbought territory with an RSI of 68 as seen on its daily chart. Besides, it has continued to trade above the 25 and 50-day exponential moving averages.
Even with the bullish signals, I remain cautious over polkadot price. Over the weekend, it will likely continue to find resistance at 7.15. Subsequently, a take-profit mood may yield a pullback to around 6.50. Nonetheless, the support at around 6.00 will likely remain steady in the short term. On the flip side, a move above the aforementioned resistance zone of 7.15 may give the bulls an opportunity to hit a fresh 3-month high at 7.43.
