- Polkadot price oscillating between two vital levels of $47.95 and $38.67
- A bullish move above $47 could kick-start a 50% breakout for DOT
- Price expected to become more volatile after moving out of these vital ranges
Polkadot price analysis for the shows price continuing to swing in a diverse range of $38.67 and $47.95. Currently sitting at $43.51, DOT has seen a 2 percent drop from yesterday’s high of $44.74. Trading volume has also dropped more than 49 percent. However, in an overall bullish market, it could only take a sudden spike to push price past the $47 resistance, which could initiate an ascent up to 50 percent for the token. The breakout from $47.95 could see Polkadot move towards an all-time high of $49.78, where short-term sellers would be expected to book their profits.
The larger cryptocurrency market continued to show strong signs in the market, as Bitcoin climbed back past $61,000 after yesterday’s decline. Ethereum consolidated above $4,100 with a 2 percent rise, with Altcoins showing mixed outcomes. Cardano and Ripple fell slightly, while Litecoin and Dogecoin rose around 2 percent each. Solana dropped 3 percent to $193.62 after making a significant rise the day before.
DOT/USD 24-hour chart: Head and Shoulders pattern appears
On the 24-hour chart for Polkadot price analysis, appearance of a Head and Shoulders pattern suggests that a classic battle between buyers and sellers is underway. Buyers have been trying to push price upwards, succeeding up to the $46.22 mark yesterday, but sellers come into the market at every move to push price downward. However, the Relative Strength Index (RSI) shows an almost overvalued, yet strong reading of 63.48, suggesting a breakout can be on the cards anytime that buyer momentum can consolidate. Price currently sits well above the crucial 20 and 50-day Exponential Moving Averages (EMAs) and is expected to continue above these points.
DOT/USD 4-hour chart: Bearish price action underway in the short-term
To justify the buyer-seller battle and the widely diverging price range, bearish price action on the 4-hour chart can be seen underway. DOT price sits below the 20-day EMA at $43.77 and any move continuing downward below the $38.69 support floor could spell a bigger crash for the token. The RSI value sits at a lowly 49.17, suggesting an undervalued status for the coin at current short-term trend. To compound the bearish status, the Moving Average Convergence Divergence (MACD) curve also can also be seen moving below the neutral zone.
Polkadot price analysis: Conclusion
According to technical indicators, all DOT needs is to break past the $47.95 resistance point to initiate a strong upturn that could take it past the all-time record point. The larger market for the token is currently spread in a diverse range as buyers continue to battle with sellers on the daily chart. In case the trend continues for longer, buyer pressure may die down and DOT would visit the support at $38.69 to initiate a comeback from there.
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