Polkadot becomes the fifth-largest cryptocurrency after toppling Chainlink (LINK).
DOT/USD bulls are looking forward to breakout above the ascending channel.
Polkadot has grown massively in the last two months to the extent of displacing much older coins from top positions in regard to market capitalization. Over the weekend, the token surged above the stubborn resistance at $5, extending the bullish leg above the next hurdle at $5.5. The most significant milestone was the surge in market capitalization. DOT displaced a couple of projects including Chainlink and Binance Coin to become the fifth-largest digital asset in the market.
At the time of writing, Polkadot is trading at $5.36, following a retreat from the weekend highs. The token has a market capitalization of $4.5 billion. Binance Coin currently seats in the sixth position with a market cap of $4.2 billion. On the other hand, Chainlink has been pushed two positions back to the seventh spot with a market cap that stands at $4.1 billion.
Obviously, the biggest question is, can DOT sustain this uptrend? For now, the answer is yes, considering that the 4-hour chart shows the price trading above both the 50 Moving Average (MA) and the longer-term 100 MA.
DOT/USD 4-hour chart
The Relative Strength Index (RSI) in the same 4-hour chart shows that buying power is still present, although not as high as it was over the weekend. The RSI has recovered from a minor dip to 55 and currently holds the ground above 60. If the leveling motion takes over, there is a chance that Polkadot will consolidate above the 100 MA at $5.25. If push comes to shove, the $5 level will come in handy.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com