Polkadot (DOT) has been performing really well in the past few days. The data shows that the price of the asset has been moving higher and it has become bullish for investors.
The data shared by BitTribute, a cryptocurrency news blog suggests that the trading price of the asset has been doing really well as it has become very bullish. Even in the past 7 days, the value of the asset has continued to grow stronger.
Data from Coingecko
A data analytical firm, Coingecko has revealed that the trading price of the asset has recorded a huge surge in the past 7 days.
The report suggests that even during a mixed market situation, DOT’s price has surged by 10% in the past 7 days. Following the surge, the trading price of DOT has moved up to a high of $4.69 per DOT.
DOT is considered the 13th largest cryptocurrency in the entire crypto-verse. The data shows that the asset has managed to trim the losses by significant figures due to the recent trading sessions.
A look at the price chart shows that the value of the asset had recorded an 11.4% dip in the past 30 days. However, the recent surge has managed to trim most of the losses that the asset had incurred so far.
Despite the recent surge, the value of the asset is 54.98% lower than its all-time high trading price.
Technical Factors Advise Caution
Although the price of the asset has been moving in an upward direction, the technical indicators are suggesting caution for investors.
It is important for the users to remain cautious as the technical indicators suggest that the rally being witnessed for DOT might be short-lived.
Every day the rally persists for the asset, the risk grows stronger and the trading price of the asset may soon experience a downtrend.
The RSI suggests that DOT is about to hit the mid-level but given the situation of the asset in 2022, the 50% mark has become the strong selling region.
As the RSI hits the mid-level, there might be investors who may start selling the token on a large scale. This may trigger a selling spree and the value of the asset may continue getting pulled lower.
DOT is in a Good Position
Although the selling spree possibility lingers, there is one thing that has happened to Polkadot, which is quite promising.
It may become the reason that the investors make huge investments in favor of the asset. The asset has reportedly pulled itself out of the category of being a security.
This means that the asset is no longer under any kind of regulatory threat. Many assets such as XRP, have found themselves in massive troubled situations due to the same reason.
The US SEC adopted the same against XRP, claiming that it w