TL;DR Breakdown
- Polkadot price expected to consolidate at the current level.
- The closest support level lies at $16.65.
- DOT price faces resistance in crossing the $19.00 mark.
Polkadot price is consolidating around the $17.00 level as DOT volatility continues to dwindle. The trade volume has seen a marked decline in the past few days as the price action stabilizes.
The broader cryptocurrency market sentiment also shows confusion as most assets record a net price movement of less than one percent across the last 24 hours. These include Bitcoin and Ethereum that record a positive 0.07 and a negative 0.91 percent movement across the period respectively.
Polkadot price overview: Polkadot price across the last ten days
Polkadot price struggled to climb above the $10.00 level and consolidated at the level for quite a while. However, once the buyers broke above the level, DOT entered a bullish rally that caused the price to spike towards the $20.00 level with a brief correction at the $15.00 level. However, Polkadot price continued the bull rally, with the price action only stopping at $19.3966.
As DOT failed in crossing above the $20.00 mark, the bullish momentum died down while the selling pressure increased. Subsequently, the price fell to $17.00 and has remained consolidated at that level.
Technical indicators
Across the technical indicators, the MACD shows increasing bearish momentum as the two EMAs continue to diverge. However, the divergence is not too sharp, and if the DOT price closes the day above the $16.650 mark, the indicator would suggest a bullish turnover.
The RSI has returned to neutral and shows a return to 50.00 as the price consolidates at the level. The declining RSI suggests increasing bearish pressure on the price action, while the low gradient suggests low bearish momentum.
The Bollinger bands show convergence suggesting that Polkadot price may continue observing low volatility in the short term. The bands suggest further consolidation at the price level before DOT breaks out.
The four-hour technical analysis issues a buy signal as 12 of the 28 major technical indicators support a bullish movement. Of the remaining 16 indicators, seven indicators issue sell signals while nine remain neutral, not leaning towards either side. As such, while the technical analysis issues a buy signal across the timeframe, the signal is not very strong.
The 24-hour technical analysis shares this sentiment and issues a stronger buy signal as 16 of the 28 technical indicators support a bullish price movement across the timeframe. The analysis shows that only two indicators are issuing sell signals while another eight indicators remain neutral.
What to expect from Polkadot price?
Traders should expect Polkadot price to continue consolidating around the $17.00 mark before the price makes a bullish breakout above the $19.00 level. The increasing selling pressure and the declining trade volume make it difficult for the Polkadot price to climb above. As such, DOT can be expected to see sideways movement at the level.
Conversely, if buyers fail to defend the $16.50 support level and the price falls below the level, DOT may fall to the $12.50 level with potential downwards movement to $11.850.
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.
