- Polkadot blockchain seems to be leading up to a new bull run.
- The last two-week period has the crypto enjoy a mostly green candlestick chart.
- Investors however must remain careful of overbought RSI levels.
Market-leading blockchain Polkadot seems to be going in for another bull run. Following its major lows to 1/5th of its ATH, the crypto is recovering. Trading at a price of $19.75 at the time of writing, DOT is facing a crucial resistance level.
However, since hitting its support level of $9.188 around 21st July, it has seen great growth with mostly green candles as shown above. In fact, its position at this point is confirmation of an uptrend. Although it may be argued that Polkadot price was already undergoing a significant upward trajectory, mid-level lows in late July and early August did much to dampen the excitement.
Still, now it seems time has come for DOT fans to celebrate. The only thing to be wary of now is the Relative Strength Index. While the currency is flourishing in value, it is notable that Polkadot is also dangerously close to overbought levels. Its RSI is reaching the 70th level.
In this case, traders need to be extremely careful when investing. The upswing may seem fairly straightforward, a valuation that is above real value may not be a sustained trend. It is likely that it may result in sudden price crashes.