- Polkadot price currently at $4.8377
- Short-term chart suggests bullish turnover as support holds
- If short-term support fails, price will decline to $4.500
Polkadot price prediction: Today’s price overview
Polkadot (DOT) price started the day at $5.0569 with strong bearish momentum as the bearish pressure on the markets increased due to the decline in Bitcoin’s price. Polkadot price has declined below key support levels, and indicators suggest further downwards movement. Currently, the price is $4.8377 showing a 4.35 percent decline from the day’s opening price.
DOT/USD price across December
Polkadot price had a really strong start to December as the price action seemed to be making a V-shaped recovery back towards the $6.00 level. However, the increasing bearish pressure did not allow for that to happen, and the price was rejected twice from the $5.50 level.
Following the rejection, Polkadot price action turned bearish with the price declining steadily towards the $4.86 level. While the buyers did defend the price level, the bearish pressure did not leave much room for upward movement, and today, the price declined below the support level.
On the technical indicators, the MACD shows declining bearish momentum as the two EMAs converge. Meanwhile, the RSI hovers close to the oversold signal indicating that sharp downwards movement would exhaust the bears.
However, while the indicators suggest bullish conditions, the price may not necessarily turn bullish. While the RSI suggests an underpriced asset, it has been issuing the signal for a while, and the price action has only consolidated since then. If buyers fail to make a V-shaped recovery, the price is very likely to decline further.
Polkadot price action since November
Polkadot price has been moving around the $4.00 level for the better part of the last quarter of 2020. Between October to mid-November, the price action has seen relatively less volatility with the price oscillating around the $4.25 mark, as the price moved without a clear direction. The price remained consolidated between $4.00 and $4.50 for most of the month with the charts observing little activity beyond this region.
Polkadot price opened November at $4.180 with slight bearish momentum as the bulls were rejected from $4.850. The price bottomed out at $3.900, which turned out to be the month’s low as the bulls carried the price above major resistance levels towards the $6.00 mark. However, that did not happen until November 24.
The price recovered from $3.900 to $4.750 but met resistance at the level and declined below. The price fell to $4.125 before finding a strong support level to bounce back. However, the momentum was low on both sides and the price consolidated for the next seven days.
On November 16, the price broke above the $4.500 level with strong bullish momentum as a wave-like bullish activity carried the price to the $6.000 level. However, the bullish momentum died at the $6.00 level, and the price crashed back to $4.500 support. While the buyers attempted at a V-shaped recovery, the attempt failed as the price got rejected from $5.50 resistance level.
The price declined to the $5.00 level and made another attempt at crossing the $5.50 mark. However, the growing bearish pressure did not allow that to happen, and the price declined back to the support level. Today the price declined below the $5.00 level as the buyers failed to defend the support at the level.
On the technical indicators, the RSI hovers close to the oversold level but is yet to flash an underpriced asset. Meanwhile, the MACD shows increasing bearish momentum as the two EMAs diverge from each other. This suggests that the price has room for downward movement before it finds a support level.
As such, traders can expect the price to revisit $4.50 support level before the bulls can fight back. Further below support lies at $4.125 and $4.00 respectively.