Polkadot price analysis: DOT set for a 40% breakout if it can cross next hurdles

Ripple price analysis

TL;DR Breakdown

  • 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.

Polkadot price analysis: DOT set for a 40% breakout if it can cross next hurdles 1
Polkadot price analysis: Cryptocurrency heat map. Source: Coin360

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.

Polkadot price analysis: DOT set for a 40% breakout if it can cross next hurdles 2
Polkadot price analysis: 24-hour chart. Source: Trading View

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: DOT set for a 40% breakout if it can cross next hurdles 3
Polkadot price analysis: 4-hour chart. Source: Trading View

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.

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.

Razi Khan

Razi Khan

A Master's graduate in Renewable Energy Systems from England, UK, Razi is a tech-enthusiast. He's served as a content specialist for BlockPublisher in the US and has been an avid member of the crypto space as a journalist, trader, investor and analyst since 2018.

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