TL;DR Breakdown
- Polkadot price expected to climb to $20.00 mark.
- The closest support level lies at $17.500.
- DOT faces resistance in crossing above the $19.00 mark.
Polkadot price continues to consolidate above the $17.50 mark as the price faces strong resistance in crossing above the $19.00 mark. After testing the resistance level earlier today, DOT has continued to decline towards the $17.500 support mark.
The broader cryptocurrency market observes a bullish change across the last 24 hours as most major cryptocurrencies record a positive change across the period. These include the king and queen of the cryptocurrency market, Bitcoin and Ethereum that record a gain of 7.44 and 7.75 percent, respectively.
Polkadot price overview: Polkadot price across January
Polkadot price had a slow start to 2021 as the price stayed glued below the $10.00 mark for the first 11 days of January. On the 12th of January, DOT found bullish support at the $7.50 level and initiated a bull rally that enabled the price to break above the $10.00 mark. The rally carried the price to the $17.50 mark.
After reaching the level, DOT has faced strong resistance in climbing above the mark as price oscillated around the mark with an occasional fall to the $15.00 mark. Today the price made another attempt at leaving the $17.50 level by breaking above the $19.00 resistance level but failed. Since then, the price has fallen back to the $17.50 support.
Technical indicators
Across the technical indicators, the MACD has exhibited a bearish reversal and now shows increasing bearish momentum. The two EMAs are still close together, suggesting low bearish momentum. As Polkadot price continues to oscillate around the $18.00 mark, it is not unusual to observe a reversal on the MACD. However, the indicator would not show strong momentum until the price falls below the $17.750 mark.
The RSI is neutral and trades close to the 50.00 mark showing low momentum on either side. The indicator is currently moving downwards but with a decreased slope suggesting a decreasing pressure.
The Bollinger bands are currently narrow and suggest further convergence as the price volatility continues to dwindle. The narrowing indicator suggests that Polkadot price may soon observe a sharp increase in price volatility.
The four-hour technical analysis issues a buy signal as 16 of the 26 major technical indicators suggest a bullish movement. On the other hand, only two indicators support a bearish movement while the remaining eight remain neutral, not leaning towards either side.
The 24-hour technical analysis shares this sentiment as 15 of the 26 technical indicators show bullish sentiment while only two indicators are issuing sell signals. The remaining nine indicators are neutral, showing no support towards either side.
What to expect from Polkadot price?
Traders should expect Polkadot price to rise to retest the $19.00 resistance level as the price moves upwards. The positive technical indicators and the rising trade volume suggests a bullish breakout above the level towards the $20.00 mark.
Conversely, if Polkadot price falls below the $17.50 support level, DOT may revisit the $15.00 support level. Further downwards movement may mean a fall to the $12.50 mark.
