- Polkadot price analysis is bearish
- DOT prices have sought support at the $17.5
- Polkadot prices are facing a major resistance at the $18.4 level
Recent Polkadot price analysis shows recovering prices after the crypto’s value tumbled to $17.4, reaching a low not seen since mid-January. Despite this, DOT/USD is trading inside a descending parallel channel and further losses cannot be ruled out before a significant rebound takes place.DOT prices have been correcting lower high as they prices near the $18.4 resistance area. The recent candlestick closed as a bearish engulfing, which cast doubt on the bulls’ ability to push higher and invalidate the descending channel.
Polkadot price action on a 1-day price chart: Bulls need to defend the $17.4 support
The 4-hour timeframe for shows that the bulls were able to defend the $17.4 support area and push prices higher. The RSI indicator is currently in the oversold region, which suggests that further losses are unlikely in the near term. The MACD indicator has also crossed into positive territory, which is a bullish sign.
The bulls need to defend the $17.4 support area and push prices higher. The daily timeframe shows the prices have been trading between a range of $17.53 and $18.39 and the prices are currently down by only 0.01 percent, a slight bullish sign. The trading volume, as well as the market capitalization, has been on the rise as the market sentiment has shifted into the bullish territory. The market volatility for DOT prices is on rising as the Bollinger bands are starting to stretch outwards as the upper band is approaching the resistance level of $18.40.
Conclusively, the bullish momentum is expected to continue as long as prices are trading above the $17.4 support area with the next major resistance area located at $18.4. A break above this level would invalidate the descending parallel channel and could lead to a further rally towards the $20 psychological level.
Polkadot price analysis on a 4-hour price chart: Bullish crossover on the cards
Polkadot’s price is currently trading at $18.16 after a slight pullback from the highs of $19.02. The recent candlestick closed as a bearish engulfing, which suggests that the bulls are losing control and the prices might retrace lower in the near term. The 4-hour timeframe however shows a price battle, with prices fluctuating between the $17.8 and $18.4 levels.
The RSI indicator is currently in the overbought region, which suggests that prices might retrace lower in the near term. The MACD line is seen to be diverging from the signal line, which is a bullish sign. However, most of the technical indicators show a bearish crossover, which is a bearish sign. The Chaikin Money flow indicator shows that the institutional money is flowing into the market, which is a bullish sign.
Polkadot price analysis conclusion
Polkadot price analysis for today shows a mixed reaction in the market as prices trade in a descending parallel channel. The bulls need to defend the $17.4 support area and push prices higher in order to invalidate the bearish setups on the charts. A break above the $18.4 resistance area would lead to a further rally towards the $20 level.16 after a slight pullback from the highs of $19.02. Bulls are trying to keep prices afloat as they fluctuate between the $17.8 and $18.4 levels.
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