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Polkadot price analysis: DOT recovers $6.50, eyes $6.80 next

Polkadot Price Analysis

TL;DR Breakdown

  • Polkadot price analysis suggests upwards movement to $6.80
  • The closest support level lies at $6.20
  • DOT faces resistance at the $6.50 mark

The Polkadot price analysis shows that the price has found support at the $6.20 mark enabling the bulls to recover to the $6.50 mark. However, the bearish momentum is yet to disperse, and a rejection at the level may result in a crash to the $6.00 mark.

The broader cryptocurrency market observed a bullish market sentiment over the last 24 hours as most major cryptocurrencies record positive price movements. Major players include UNI and BNB, recording a 5.32 and a 5.07 percent incline.

Polkadot price analysis: DOT returns to $6.50

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Technical indicators for DOT/USDT by Tradingview

The MACD is currently bearish, as expressed in the red color of the histogram. However, the indicator shows low bearish momentum as observed in the shallow depth of the histogram. Moreover, the lighter shade of the histogram suggests that the bearish pressure has been declining since yesterday as the price recovers to the $6.50 mark. 

The EMAs are currently trading close to the mean position as net price movement over the last ten days remains low. Moreover, as the short-term charts observe low volatility, the two EMAs are moving horizontally, suggesting a lack of momentum on either side. Moreover, as the two EMAs diverge further, the bearish momentum will only increase in the short term. 

The RSI has been trading in the neutral zone for the past ten days since the index dropped into the oversold region on September 19. Currently, the indicator hovers at the 51.39 index unit level and is moving horizontally, suggesting low net activity across the short-term charts. While the indicator is neutral, the mean position leaves room for volatile movement in either direction. 

The Bollinger Bands is narrow at press time as the Polkadot price observed low volatility across the past few days and now converges as the price returns to the indicator’s mean line. Currently, the indicator’s bottom line provides support at the $6.16 mark, while the upper limit presents resistance at the $6.76 mark.

Technical analyses for DOT/USDT 

Overall, the 4-hour Polkadot price analysis issues a buy signal, with 10 of the 26 major technical indicators supporting the bulls. On the other hand, seven of the indicators support the bears showing a little to no bearish presence in recent hours. At the same time, nine indicators sit on the fence and support neither side of the market.

The 24-hour Polkadot price analysis does not share this sentiment and instead issues a sell signal with 12 indicators suggesting a downward movement against only four indicators suggesting an upward movement. The analysis shows the bearish dominance across the mid-term charts while showing low buying pressure for the asset across the same timeframe. Meanwhile, ten indicators remain neutral and do not issue any signals at press time. 

What to expect from Polkadot price analysis?

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4-hour price chart by Tradingview

The Polkadot price analysis shows that after the rejection at the $6.80 mark, the price crashed to the $6.20 mark, where the bulls found short-term support. Currently, the price is moving towards the $6.50 resistance level as the bulls struggle to gain control of the market. 

Traders should expect DOT to move upwards from the $6.500 mark as the bulls gain dominance across the short-term charts. The suggestion is reinforced by the short-term technical indicators and the 4-hour chart analysis. As such, traders can expect the price to retry the $6.80 resistance level in an attempt to recover the $7.00 mark. However, a rejection at the $6.50 mark may result in a crash to the $6.00 mark due to the high bearish pressure.

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Bilal Ahmed

Bilal Ahmed

Bilal Ahmed is a blockchain enthusiast and an avid reader who loves writing about ramifications of blockchain and cryptocurrencies. He believes in doing due diligence with facts before transmitting.

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