DOT/USD is trending upwards short term in early trading today. Polkadot has seen its value climb like other digital tokens with a vast gain in value since the 1st of February. However, it is important to note that DOT/USD is not new to this party upwards and has seen a steady gain like other major cryptocurrencies since December 2020.
On the 20th of February, DOT/USD found itself trading above the 40.0000000 juncture, but then experienced an incremental decline like the other major cryptocurrencies for a one-week period. On the 26th of February, DOT/USD was trading near the 28.00000000 mark, but since then has proven an ability to retrace its highs.
On the 3rd of March, DOT/USD was trading near the 38.5000000 mark, but then traversed slightly lower and touched the 31.50000000 juncture on the 5th of March. Polkadot is currently the sixth highest-ranked digital currency according to market cap data.
It should also be noted that it has been reported that early around the 5th of March on the Binance exchange, Polkadot did suffer a temporary flash crash for a very short period of time. This happened via a future contract the Binance exchange offers, but the price of DOT/USD did not suffer any prolonged effects and supposedly did not affect many traders. However, the news should serve to underscore that DOT/USD remains a speculative asset and that large traders who are not necessarily transparent can have an effect on the cryptocurrency.
Broad sentiment within the cryptocurrency world the past week has been stable to positive, and this has helped bolster sentiment regarding DOT/USD. Current support levels look like potentially good spots for speculators who believe sentiment in cryptocurrencies and DOT/USD will stay positive to become buyers and seek tests of high water marks made earlier in March.
If the high water marks of early March are brought to within shouting distance with positive price action and prove resistance levels are vulnerable, speculators may believe that highs seen in February will be the next target. As always, traders within cryptocurrencies are encouraged to use limit orders to make sure price fills meet the goals of speculative outlooks.
Polkadot Short-Term Outlook:
Current Resistance: 36.90000000
Current Support: 35.60000000
High Target: 37.85000000
Low Target: 33.38000000
