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Polkadot price analysis: DOT breaks above $5.07 support, as bullish momentum dominates

Polkadot price analysis

TL;DR Breakdown

  • Polkadot price analysis is giving bullish hints today
  • The nearest resistance is found at $5.33
  • DOT/USD is currently trading at the $5.30 mark

Polkadot price analysis is on the bullish side today. Bulls have taken the price up to $5.30 today, after a continuous decline for the past week, which was expected after hitting the all-time high at $5.45 on 8th December. Today DOT bulls swiftly broke the price above the $5.30 mark, now aiming for the next resistance at $5.33. On the contrary, support for DOT/USD pair is present at $5.07.

DOT/USD 1-day price chart: Polkadot price recovers to $5.30

The 1-day price chart for Polkadot price analysis shows the price had recovered well above the $5.00 level after yesterday’s plunge when the price stooped as low as $5.07. Currently, the DOT/USD pair is trading hands at $5.30 at the time of writing. The cryptocurrency had gained around 4.40 percent value during the last 24 hours. DOT/USD trading volume has also increased by 17.04 percent, and the market cap is also up by 4.43 percent.

image 279
DOT/USD 24-hour price chart. Source: TradingView

The Relative Strength Index for DOT/USD is currently at 44.72, which suggests that the digital asset is neither overbought nor oversold. The DOT/USD is highly volatile at the present time as the Bollinger bands started diverging sharply on the 13th of December, and now the indicators have taken an upwards breakout, as the lower band is now converging more as compared to the upper band going further up. The mean average of the indicator provides support to the price as it moves upward toward the moving average (MA). If the price takeover the MA level, then it will be a further bullish indication. 

Polkadot  price analysis 4-hour price chart: Firm bullish sentiment forms

The 4-hour price chart for Polkadot price analysis further confirms the bullish momentum. The previous days of the trading section session proved worthy for the cryptocurrency value, as a steep increment in the price of DOT/USD was noted during the hours, but selling pressure kicked in when the price went near the upper limit of the Bollinger bands, and a reversal from $14.6 has been observed during the past few hours.

image 280
DOT/USD 4-hour price chart. Source: TradingView

As can be seen on the 4-hour price chart, the volatility has been comparatively low as the Bollinger bands converged closely. In the present circumstances, the upper band at $5.35. In contrast, the mean average of the indicator at $5.30 presents the support. The RSI is hovering at a score of 43.46, and the indicator’s curve is absolutely horizontal, indicating competition between the two sides of the market, as the buying activity is canceling out the selling pressure. The hourly price chart’s moving average (MA) value is at $5.21.

Polkadot price analysis conclusion

To, sum up, the Polkadot price analysis shows that the digital asset has surged upwards and is currently trading at $5.30. The hourly and daily charts both indicate that the bulls are in control of the market. Bears may step in and push the prices lower if the digital asset fails to sustain its prices at higher levels.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Joel Oluwatobi

Joel Oluwatobi

Joel is a Blockchain enthusiast who has been active in the blockchain sector since 2016. He enjoys talking about blockchain and its implications for the future of humanity.He loves content and creating features on cryptocurrency.

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