- Polkadot price analysis is bullish today.
- DOT/USD dropped over 35 percent since the last high.
- DOT/USD is currently trading at $28.
Today’s price increase for Polkadot is tied to our expectations for a quick recovery after a comparatively swift reaction rise from the newly discovered swing low. As a result, we anticipate DOT/USD to advance further today and aim to challenge previous support as resistance at $33.
Polkadot price movement in the last 24 hours: Polkadot continues to rise
The volatility of the markets over the past few weeks can be partly attributed to the impending token migration from Ethereum to Polkadot. Switcheo Network, a decentralized exchange on the Ethereum network, has announced that they will be the first dApp to migrate to Polkadot.
The price of Polkadot (DOT) is on the rise today, up over 10 percent, according to CoinMarketCap. This increase is in stark contrast to the 35 percent drop in value that DOT/USD experienced since its last high.
This morning, support was found at $26 for DOT/USD. A quick price increase has taken the pair up to $30 today. While this could indicate a reversal of fortunes for DOT on the daily charts, we do not see this as likely given that our short-term analysis of price action still forecasts a drop in value today.
So far today, DOT/USD has retraced back to $28 after having broken resistance at the earlier swing high beforehand. Over the past 24 hours, the trading volume is also relatively low, which makes us even more skeptical about an upward move continuing through the day.
DOT/USD 4-hour chart: DOT starts to react higher
On the 4-hour chart, we can see that after bouncing back over the past several hours, the Polkadot price action has established strong support at $26.35 this morning, implying a quick rebound in the next 24 hours.
The price of Polkadot has been on a continual decline for several weeks. The previous low of $33 was reached on November 28, after which DOT/USD gradually declined back upwards.
Following a peak of $40 on December 3, a lower low was established at $39 on December 5, resulting in a sluggish price decline throughout the first days of the month. DOT began to drop rapidly yesterday. The recent depreciation has been extremely quick, both intraday and overnight.
On January 5, 2019, the price of DOT/USD sunk to a new low of $33. The previous low was swiftly achieved and then broken, suggesting a significant fall. The Polkadot price dropped below $25 for the first time since its inception as selling pressure dominated during the night.
Polkadot Price Analysis: Conclusion
The recovery from the $28 low is positive for price action. We expect a recovery back to $30 and consider that if volume increases and DOT/USD breaks above the previous high at $36, we could see a continuation of today’s trend.
A break below $25 would be concerning, invalidating our bullish outlook. A broad rejection of the market’s lower lows over several weeks by buying pressure such as we saw this morning would be an encouraging sign for future Polkadot price movement.
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