TL;DR Breakdown
- Polkadot price analysis is bearish today.
- DOT/USD is currently trading at $45.
- Polkadot is likely to retest $43 as support.
Polkadot‘s price is bearish right now, as a retracement is necessary after the $45 mark yesterday prevented any further upside. As a result, we anticipate that DOT/USD will find support at $43 and aim to create another low there. All in all, the price is bearish today.
Yesterday’s action on DOT/USD saw a higher high at $45. Although this was not validated with momentum (i.e., volume did not increase as it would during bullish market phases), this could be viewed as an early sign of greater volatility to come for Polkadot; especially considering that yesterday’s open was roughly $43 and DOT/USD continued its upward trend to close near $45 by day end. As such, we anticipate that there will be some retracement before further movements are made, likely creating another low at $43 before embarking on an upward movement which should be sustainable as long as the higher low at $40 is not broken.
Polkadot price movement in the last 24 hours: Polkadot sets slightly higher high at $45
Considering that there was a rather significant increase in price over the last two weeks, which might have been too much for short-term traders, it seems very reasonable to assume that there will be some correction before any further advancing movement is made. The question now is: How far will DOT/USD retreat? Looking at our current candlestick patterns and price action, we anticipate a minimum retracement to around $43 (or points slightly below) before the market embarks on an upward trend. If this level is not validated, then expect a downwards move towards $38.
From a larger perspective, it appears that DOT/USD has established a trading range between at least $40 and $45. This means that DOT/USD is still in its consolidation phase before another move is made. If you plan to short the market, then there’s no better time than now because any upward movement will probably be met with high resistance levels starting at around $48.
DOT/USD 4-hour chart: DOT to consolidate around $43 today?
In October, the price of Polkadot exhibited solid bullish momentum. On the 28th of September, a new significant swing low was established at $26; however, on the 1st of October, there was a powerful push high.
On the 13th of October, DOT/USD surged to a new all-time high after several highs and lows. Since then, new heights have been attempted, with selling pressure rising.
DOT/USD has entered into a trading range that can be found anywhere between $40 and $45 right now. The RSI is currently sitting near oversold conditions also helps maintain this theory even though it appears as if it may have started to turn up very slightly. Thus, our analysis is relatively simple here since we need to wait for a retracement and determine where it will find support.
Polkadot Price Analysis: Conclusion
Today’s Polkadot price analysis is bearish, as a retrace was required following yesterday’s significant surge above $45. The closest support for DOT/USD may be found at the $43 level.
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