The price of Polkadot is on the verge of a turnaround. After rising at near-identical rates to the rest of the cryptocurrency market, Polkadot has halted. At first look, Polkadot appears to be in an excellent buying position. However, things are not as they appear. If you are expecting a quick bull run, then it’s best to temper your expectations.
The price of Polkadot is sending conflicting signals, resulting in a lot of aggravation for buyers and sellers. While PolkaDOT has shattered through the Polkadot Price Analysis in the last 24-hours: Buyers struggle to gain momentum
Cloud and even surpassed the Tenkan-Sen and Kijun-Sen, the Chikou Span has yet to break free from its tight grip. The oscillators indicate hesitation among buyers.
A hidden bearish cross on the OBV indicates pressure building up among sellers. This is not helped by the lagging indicators, which are sending conflicting signals. For now, it’s best to sit out until there is clearer bullish action that will confirm a turn-around in the asset price.
The RSI reveals a conflicting view of the OBV and price action. While buyers struggle to gain momentum in price, their efforts show no sign of breaking over 50 (major over-buying pressure). This is illustrated by the current value for the RSI, which is at 52.02. If this value continues to rise, then the price of Polkadot will be at risk of dipping into bearish territory.
At the moment, the Relative Strength Index is in a bear market. It’s difficult for it to pass over the first overbought condition at 55, which is where the Relative Strength Index is sloping downward and away from the second overbought condition at 70. However, there is no clear exit point for the RSI to pass through.
The MACD indicator continues to signal without providing much indication of which direction it plans on moving in. Theories are that the current flat line could either indicate a trend continuation or pullback. This would be determined by how quickly it brings the curve back in line with the signal.
Despite the recent advance, there are no indications of momentum. Despite the Kumo breakout, the price has begun to drop below another Tenkan-Sen line. This is considered a sign of selling pressure and will continue if the Chikou Span falls below 0.00001169, as it is now. Momentum indicators are also trending down, which is not a good signal.
The Cloud has proved to be a crucial turning point for exit-only traders, so keep an eye out for an exit. An exit from $37 is likely once the price leaves the Cloud, suggesting a shift in momentum.
The price of Polkadot is currently at a critical point where one wrong move could send it plummeting even further. Our advice is to wait for an exit from the Cloud or a convincing reversal signal before entering any positions. While we can’t predict whether this will be a long-term recovery, we advise against entering into long positions yet, especially with the current conflicting signals.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on October 6, 2021 4:09 am
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