- Polkadot price expected to observe sideways movement before bullish breakout.
- DOT faces resistance at the $44.00 mark.
- The closest support level lies at $42 and further below at $40.
Polkadot price has once again failed in climbing above the $44.00 mark and fallen back to the $42.00 mark. The price has been consolidating in this price level for the past 12 days as DOT struggles to find strong momentum to break out in either direction.
The broader cryptocurrency market enjoys a bullish sentiment across the last seven days, with most major cryptocurrencies recording profits across the timeframe. Major players include BNB and XRP that record a 31.56 and a 67.81 percent increase, respectively. Meanwhile, Bitcoin and Ethereum record a 9.01 and an 18.98 percent hike.
Technical indicators for DOT/UDST
Across the technical indicators, the MACD is bullish but shows low bullish momentum as the two EMAs hover close to each other. The indicator was showing strong bullish momentum until the Polkadot price action faced rejection at the $44.00 mark. Since then, the histogram’s size has declined significantly as the 12-EMA declined while the 26-EMA rose.
Currently, the two EMAs are moving close together, with the 26-EMA slowly catching up to the 12-EMA suggesting an increasing bearish pressure.
The RSI is currently trading in the neutral zone a little above the 56.00 mark and does not issue a signal. The indicator has been trading in the neutral zone for the last two weeks. Recently, the RSI indicator has had a small spike towards the overbought region, suggesting a bullish presence at the current price level.
The Bollinger bands were expanding until recently but now suggest convergence as the price oscillates around the $42.00 mark. Currently, the Polkadot price is trading above the indicator’s mean line, suggesting bullish momentum. However, the price is unable to break above the $44.00 mark suggesting consolidation at the current level.
Overall the 4-hour technical analysis issues a buy signal with 15 of the total 26 major technical indicators suggesting their support for a bullish movement. On the other hand, only one indicator issues a sell signal suggesting a bearish retracement. Meanwhile, 10 indicators sit on the fence, issuing no support for either side of the market.
The 24-hour technical analysis shares this sentiment and also issues a buy signal with 14 of the 26 indicators suggesting a bullish movement against only two indicators suggesting a bearish retracement. Meanwhile, 10 indicators remain neutral and do not issue any signals at the time of writing.
What to expect from Polkadot price?
Traders should expect the Polkadot price action to continue its sideways movement as DOT struggles to gain momentum. The consolidation would end with a bullish breakout, as suggested by the technical analyses. However, the market sentiment and the buying volume need to be favorable for that to happen. Currently, the trade volume is relatively low as traders speculate the asset’s next move.
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