Polkadot price analysis remains bearish according to price action today, as price failed to break out past the $5.40 support in place. The current trend has been taking a horizontal shape since the start of December, as DOT continues to fail making up for losses incurred at the start of last month. However, buyers are expected to be building momentum to test the $5.6 resistance. If this level is cleared, a further bullish test of the next resistance point at $7.0 could be expected.
The larger cryptocurrency market performed lowly over the past 24 hours and mostly consolidated around prices set yesterday. Bitcoin remains in touch with the $17,000 mark, whereas Ethereum stayed above $1,200 with a minor increment. Among leading Altcoins, Ripple settled around the $0.39 mark, while Cardano lost 1 percent to move down to $0.31. Meanwhile, Dogecoin dipped 2 percent to move down to $0.09, whereas Solana gained the same percentage amount to move up to $14.14.
Polkadot price analysis: DOT price remains above EMAs on daily chart
On the 24-hour candlestick chart for Polkadot price analysis, price can be seen forming a sideways pattern around the $0.45 support. If bulls build enough pressure to break the $5.6 resistance, the next challenge will be faced around the $6.7 mark. Price remains above the 50-day exponential moving average (EMA) at $5.46 for now, along with the 9 and 21-day moving averages. Over the past 24 hours, DOT trading volume dropped more than 22 percent, indicating the dip around seller hold in the market.
The 24-hour relative strength index (RSI) presents the same viewing as DOT price to mimic a horizontal trend. It currently sits at 47.15, with more room to drop further into the oversold region around the 35 mark for a breakout to occur. Meanwhile, the moving average convergence divergence (MACD) curve continues to show a bullish divergence in place above the neutral zone.
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