Polkadot price analysis: DOT finds support at $6.50, can the bulls defend the level?

TL;DR Breakdown

  • Polkadot price analysis suggests sideways movement before recovery to $7.0
  • The closest support level lies at $6.500
  • DOT faces resistance at the $6.800 mark

The Polkadot price analysis shows that the DOT price action has found support at the $6.500 mark after crumbling from the $7.50 mark. However, the price action still faces strong resistance at the level.

The broader cryptocurrency market observed a bearish market sentiment over the last 24 hours as most major cryptocurrencies recorded mixed price movements. Major players include STX and NEO recording a 12.55 and a 8.06 percent decline, respectively.

Polkadot price analysis: DOT finds support at $6.500

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Technical indicators for DOT/USDT by Tradingview

The MACD is currently bearish, as expressed in the red colour of the histogram. On the other hand, the indicator shows low bearish momentum as expressed in the shallow depth of the indicator. Moreover, the lighter shade of the indicator suggests an increasing bullish activity as the price finds support at the $6.500 marks.

The EMAs are currently trading very close to the mean position as net price movement over the last ten days remains low. Currently, the EMAs are trading close to each other showing low momentum at press time. On the other hand, the converging EMAs suggest a slowly declining bullish momentum.

The RSI was rapidly moving downards as the price fell from the $7.500 mark towards the $6.500 mark, but started to stabilize as the price found support at the level. At press time, the indicator trades near the oversold level at 35.79 index unit level as the price suggests low net momentum with a gentle slope suggesting struggle between bears and bulls at the current level.

The Bollinger Bands are currently wide as the price action observed high volatility across the short-term charts. Moreover, as the price action trades close to the bottom limit of the indicator, suggesting further divergence across the timeframe. The indicator’s bottom line provides support at the $6.269 mark while the mean line presents a resistance level at the $6.808 mark. 

Technical analyses for DOT/USDT

Overall, the 4-hour Polkadot price analysis issues a sell signal, with 12 of the 26 major technical indicators supporting the bears. On the other hand, only four of the indicators support the bulls showing low bullish presence in recent hours. At the same time, ten indicators sit on the fence and support neither side of the market.

The 24-hour Polkadot price analysis shares this sentiment and also issues a sell signal with 10 indicators suggesting a downwards movement against seven suggesting an upwards movement. The analysis shows bullish dominance across the mid-term charts with strong bearish resistance persisting. Meanwhile, the remaining nine indicators remain neutral and do not issue any signals at press time.

What to expect from Polkadot price analysis?

image 508
4-hour price chart by Tradingview

The Polkadot price analysis shows that the Polkadot market is enjoying a strong bullish rally as the price rose from $4.30 to the $7.80 mark in the last 50 days. However, the price action observed a sharp crash at the level causing the price to drop back to $6.50 mark where it trades at press time.  

Traders should expect DOT to observe sideways movement at the current price level before the price action moves back towards the $7.00 mark. However, the bulls need to defend the $6.500 support level for the next three days to continue the bullish sentiment. On the other hand, movement below the $6.500 mark would result in a drop to $6.00 where the next strong support level lies.

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 decision.

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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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