- Polkadot price prediction shows signs of a freefall after retracting from its all-time high valuation of $30.
- A freefall to $25 is evident if support at the 50 SMA does not hold.
- A price upsurge past the $30 mark is possible if the new support level at $25 remains intact.
Today’s trading events have been interesting for the Polkadot cryptocurrency, with the crypto coin hitting an all-time high milestone at $30. Continuing the trend it has been on since the start of February, Polkadot has been recording impressive price movements in the market.
Although the crypto coin started the day on a low note by trading at about $23, a steady upward parallel price movement came to the rescue, helping the crypto coin from the looming downward trend.
At the time of writing, Polkadot has pulled back from the all-time highs and is currently trading at about $28. If the new crucial support fails to stop at $25, a further price decline towards the $20 mark is imminent.
Polkadot price prediction and technical indicators
On the 4-hour chart, the 50 Simple Moving Average and the rising parallel channel lower line, it is evident the new immediate support mark is $25. If Polkadot fails to hold above the $25 mark, DOT’s immediate support level, the crypto coin risks a significant bearish trend.
In the event the prices plummet, the 100 Simple Moving Average will be the next tentative support, near the $20 mark. If things turn out for the worst, then the 200 Simple Moving Average will come to the rescue to avoid the price decline extending below the $20 mark.
Also known as the MACD, the Moving Average Convergence Divergence shows signs of a downward price movement. When appropriately utilized, the MACD can help traders predict the best time to buy when the crypto coin is at the bottom and when to sell while at the top.
At present, the MACD blue line shows signs of an imminent cross between the yellow signal line and itself. This suggests Polkadot is up for a price surge and is close to reaching an exhausted top, which might be the best time to sell.
For now, the least resistance path is showing a downward trend, awaiting the establishment of a formidable support level.
According to research, Polkadot tends to attract a lot of social media attention whenever it records an upward price surge. In its run towards its all-time high price tag of $30, Polkadot attracted over 1,000 mentions on cryptocurrency social media platforms such as Telegram groups, crypto reddits, and discord groups.
Contrary to popular belief, whenever a crypto coin hits a milestone, it often does not reflect a long-term bullish movement. The more a crypto coin is mentioned on crypto social media platforms, the more selling pressure mounts.
This usually leads to the crypto coin flipping bearish. Therefore, DOT’s retracement movements appear to have been influenced by external factors and could continue if the crypto coin does not secure higher support.
What to expect from Polkadot DOT?
According to our price prediction, traders should expect Polkadot prices to avoid incoming bearish pressure to $25 if sellers disperse the buying congestion experienced at the 50 Simple Moving Average (SMA) on the 4-hour chart.
Recovery from this support will drive this crypto coin to more gains, with the potential to drive it back towards and past the $30 mark.
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.