Polkadot price defends $4.750 support, can bulls initiate a trend reversal?

Polkadot price defends support can bulls initiate a trend reversal

TL;DR breakdown

  • Polkadot price currently at $4.855
  • Buyers have defended key support level
  • Price to consolidate at the current level before bullish breakout

Polkadot (DOT) price has been rejected from the resistance level at $5.50 and has failed to hold the $5.00 support level. Currently, the price is trading above the $4.70 support level, but the trend is yet to turn bullish and continues to hover below the $5.00 mark.

Polkadot price today

Polkadot price opened at $4.8835 with slight bearish momentum that has defined the price movement throughout the day. While the bearish momentum has disappeared from the DOT price, the net movement today has been bearish. Currently, Polkadot price is $4.8555 showing a 0.57 percent decline from the day’s opening price.

DOT/USD trend analysis

Polkadot price defends $4.750 support, can bulls initiate a trend reversal? 1
Polkadot price chart by Tradingview.

Polkadot price started November with little momentum towards each side as the markets appeared to be in a state of confusion. The price action initially moved downwards, but the buyers acted quickly raising the price back above the $4.00 level, which has not been breached ever since.

On November 4, the price action turned sharply bullish as the buyers dominated the markets, raising the price to $4.855. However, the spike in the asset’s price caused the price action to become unstable as the bullish momentum exhausted. Subsequently, the price action declined again, falling to a low of $4.085.

Although the buyers defended the support at the level, the bulls were unable to reverse the trend, and the price action stagnated below the $4.500 level for the next seven days. On November 16, the price action turned bullish and rose to the $6.00 mark with wave-like bullish activity marking the charts.

However, the market sentiment at the level saw a complete reversal as Bitcoin price failed to stay above $20,000 and declined below. The sentiment affected the entire crypto market as the price actions of most altcoins erased their previous gains with sharp red candles.

As the price of Bitcoin stabilized, DOT price defended the $4.560 support level as the price moved for a V-shaped recovery. The price could only recover to $5.50 before the bulls capsized under the increasing bearish pressure, and the price failed to cross above the level despite multiple attempts at the resistance level.

Since then, the price action has remained bearish and has declined to support level above $4.750, where it currently hovers.

Polkadot price prediction: Where is DOT price heading

Polkadot price defends $4.750 support, can bulls initiate a trend reversal? 2
Polkadot price chart by Tradingview.

On the technical indicators, the MACD shows increasing bullish momentum as the two EMAs diverge further. This suggests that the current support level may enable bulls to recover recent loses. Meanwhile, the RSI remains neutral and does indicate support towards either side.

While the indicators remain relatively positive, the trade volume has been considerably low compared to late November when the price was trading above the $5.50 level. The low trade volume indicates that many people are spectating from the sidelines.

Traders should expect Polkadot price to consolidate for a while before breaking above. Currently, the nearest resistance lies at $4.90 withfurther above resistance levels lying at $5.18 and $5.50 repectively. Conversely, if the price observes movement below the current support level, the price may fall to the $4.50 support level.

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.

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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