- Polkadot price analysis is bearish today
- 14 moving averages show sell signal.
- The $20.46 mark still pose a major hurdle for Polkadot breakout
On the technical analysis, meanwhile, the DOT/USD pair faces a lot of sell recommendations. 16 out of the 26 most important technical indicators are pointing toward negative territory. 14 out of the 15 most significant moving averages indicate a selling mood. The oscillators are currently positioned in neutral with 1 buy indication, 8 neutral signals, and 2 sell signals.
All the indicators on the daily time frame that we use to analyze and draw conclusions for DOT/USD are bearish, with almost all suggesting a negative bias. The only oscillator expected to rise is the Relative Strength Index (RSI), which picked up from the 40s and currently standing at 50.749, so some buying pressure could be experienced.
Net value indicators are also negative. The percentage of long positions is very low (3%) while the number of short positions (65%) is high, with an average of 50%, which traditionally denotes a net bearish mood on the market.
The $20.46 mark is the main obstacle standing in the way of Polkadot price action today. Buyers attempted to break through the $20 barrier in the morning, but they ran into resistance at the hurdle. Daily traders should keep an eye on this point and buy the dip below the resistance; however, they will have to fight another. Around $19.5, minor daily resistance can be found in the form of another peak in intraday Bollinger Bands (BBL) and RSI signals.
Polkadot 4-hour price analysis: Recent price developments
The immediate buying opportunity presented itself at around $19.4, where major daily support is found in the form of RSI signals that are higher than 50 and Bollinger Bands (BBL) that are moving away from the mean. The support was tested in the late American session, but it managed to hold until the breaking of resistance in the $20 range.
For those interested in buying Polkadot, now looks like a good time as the pair faces major buy signals near support at $19.5 and minor resistance at around $20. If the price breaks below, traders should go short until it finds minor support at $17.7.
On the other hand, if Polkadot breaks above the $20 mark, it will likely test resistance in the $21 range in the American session before returning to try to break back through in the last few hours of the European session. These three periods constitute important trading sessions in which price action is more likely to remain stable.
Polkadot Price Analysis: Conclusion
The weekly Polkadot price analysis is bearish due to the fact that market indicators are putting more pressure on the bulls to test $17 and $18. The $20 and $22 resistance levels prevent the para chain cryptocurrency from breaking out and testing January’s highs between $27 and $28. The price of Polkadot may rise into the weekend to test the $21 range, but early next week will likely see a drop to at least $17.5.
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