Polkadot Price Analysis: We expect DOT/USD to spike to the previous support of $43

Polkadot Price Analysis

TL;DR Breakdown

  • Polkadot price analysis is bullish today.
  • DOT/USD is currently trading at $40.
  • Support at $38 currently prevents further downside.

Today’s price analysis of Polkadot is bullish, as we anticipate a reaction higher after a drop of more than 15% overnight. With the next barrier at $43, we expect DOT/USD to return above $40.

The Bollinger Bands are beginning to tighten on the daily time frame, signaling a possible return of volatility within this market. While the price has been stable for several weeks, we anticipate an increase in both volume and volatility when it is resumed. Furthermore, the Ichimoku Cloud – while remaining bearish – has shown signs of improvement. The Tenken-sen, for example, has continued to break upwards, now sitting at $38 after bouncing off the support level.

We anticipate a return to equilibrium (the Ichimoku Cloud) around $40 before any advances are made – however, if the momentum does continue higher, we would not expect significant resistance until $45.

The market has retraced more than half of the previous bullish momentum – signaling a possible end to the uptrend and indicating that we could see further downside in the coming days. We will be closely monitoring this support level over the next few hours, expecting a higher reaction if tested.

If the support at $38 does not hold, we expect further downside towards $30 – establishing a new dynamic low for this market.

DOT/USD 4-hour chart: DOT to regain some of the loss today?

On the daily chart, we see the Polkadot price holding near $38, possibly signaling a rebound later today.

Polkadot Price Analysis: We expect DOT/USD to spike to the previous support of $43 1
DOT/USD 4-hour chart. Source: TradingView

The price of Polkadot has been bearish for the previous week. After a spectacular surge in early November, another all-time high was established at $55 on November 4th.

On the 8th of November, after failing to reach further upside, DOT/USD formed a clear lower low. The strong selling began shortly thereafter, with support at $43. From there, resistance was regained around $46 over the weekend, followed by an advance and consolidation.

Last night, a lower break was observed once again. The Polkadot price plummeted quickly below previous support at $43, with a solid lower low recorded at $38 today. Bears will likely react upwards today as a result of such a significant decline.

Polkadot Price Analysis: Conclusion 

DOT/USD is bullish with support at $$38, currently preventing further downside. Additional barriers sit at $43 and $45 before the next major resistance level begins to take hold – at this point, we remain bearish on the Ichimoku Cloud.

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.

Sergio Goschenko

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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