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Polkadot price prediction: Polkadot retest $42 as support, prepares to move to $46

Polkadot Price Prediction

TL;DR Breakdown

  • DOT finds support at $42.
  • Next support at $40.
  • Next resistance at $46.

Today’s Polkadot price prediction is bullish as the market retraced to retest previous resistance around $42 as a support with a rejection for further downside. Therefore, we expect DOT/USD to reverse later today and start moving towards the next target at $46 over the next days.

Polkadot price prediction: Polkadot retest $42 as support, prepares to move to $46 1
Cryptocurrency heat map. Source: Coin360

The overall market trades in the green over the last 24 hours despite retracements seen across the board over the past hours. Bitcoin is up by 2.3 percent, with a market dominance of 54.7 percent. From the major altcoins, the best performance is seen for VeChain (VET), which is up 23.8 percent and trades just below $0.17. The rest of the majors trade with around 5-10 percent gain.

Polkadot price prediction: Polkadot retest $42 as support, prepares to move to $46 

DOT/USD opened at $42.98 after a strong rally yesterday. After further bullish momentum overnight took the market price to $44.5, DOT/USD started retracing over the past hours. A quick spike towards the previous resistance at $42, which now acts as support, was made. Polkadot rejected further downside, meaning that we should see the market reverse and push higher again over the next few days.

Polkadot price movement in the last 24 hours

The DOT/USD price moved in a range of $40.42 – $44.53, indicating a good amount of volatility. 24 hour trading volume has increased by 76.47 percent and totals $3.16 billion, meaning a substantial increase in market interest. The total market cap stands just below $40 billion, ranking the cryptocurrency in 7th place overall.

DOT/USD 4-hour chart – DOT spiked lower and rejected further downside at the $42 support

On the 4-hour chart, we can see a quick spike lower over the past hours, with the $42 level acting as a support. If Polkadot holds above this support, we expect further upside over the next 24 hours.

Polkadot price prediction: Polkadot retest $42 as support, prepares to move to $46
DOT/USD 4-hour chart. Source: TradingView

Overall Polkadot has resumed its bullish trend over the past weeks after previously consolidating around $32-$38. After a quick spike lower, DOT/USD found support at $28. From there the market rallied for more than a week until a new all-time high was set at 46.74, resulting in a price increase of around 65 percent.

From there, we saw a several-day consolidation around the $44 price mark and another spike lower to $38, which previously acted as a support. Further downside was quickly rejected, meaning that a strong higher swing low was established. Over the following days, the Polkadot price action traded sideways with the $40 level acting as support and the $42 level acting as resistance. 

Yesterday, DOT made a slight movement below the $40 mark as it faked a breakout to the downside. The rest of the day was spent rallying higher until a new higher high was set at the $44.5 mark. 

Earlier today, any further downside got rejected, and the Polkadot price started retracing, resulting in a quick spike lower over the past hours. Previous resistance at $42 acted as a support, with rejection for further downside seen as of now. This price area also is in confluence with a 50 percent Fibonacci retracement level from the previous upswing. Therefore, a long position taken from the current price levels offers a good entry in terms of risk/reward.

Once the Polkadot Price action reverses back to the upside, the next target to reach is set at $46. If reached from the current price of $42.5, it would mean a gain of over 8 percent over the following days. From there, DOT/USD should push higher towards new all-time highs as the overall several bullish trend continues.

Polkadot Price Prediction: Conclusion 

Polkadot price prediction is bullish as the market has retraced to retest the $42 mark as support. Since further downside is rejected, for now, we expect the market to reverse and push towards the next price target at $46 later this week.

While waiting for further Polkadot price action development, see our Bitcoin mining software guide as well as a general overview on how to mine Bitcoin. To learn more about another great altcoin, see our long-term Stellar price prediction.

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.

Lapin

Lapin

Lapin is an experienced freelance Crypto and Financial market writer and analyst. He has been trading for several years and holds a bachelor’s degree in Finance.

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