- Polkadot price prediction expects DOT price to return to $5 within the week
- A balance between bullish and bearish activity
- The overall market direction looks bullish
- Volatility low, but on the rise
- DOT price likely to remain stable for the week ahead
Polkadot (DOT) prices have been steadily shared between the bulls and bears since early December, but are seeing some bullish advantage appearing.
Only introduced in August to the cryptomarket, DOT has seen near All-Time-Highs (ATH) of $6.08 in November, followed by a steep drop to $4.43 approaching December. Since this fall, DOT price has become seemingly complacent in its position as volume movement drops, and price lingers between the $4.5 and $5.5 range.
At the time of writing, DOT price is $4.87 – down 0.71 percent on the $4.89 opening price of the day.
Use the oscillator below to check what role DOT might play in your portfolio.
Polkadot price prediction: 1-Day chart overview
On the 1-Day chart, Polkadot reveals that the steep fall from $6 in late November 2020 found unreliable support levels and poor recovery.
As volume movement deteriorates, so too does price movement. Lingering between the $4.5 and $5.5 range since the start of December, DOT price seems to be stabilizing as it prepares to seek out a $5 support level.
The Relativity Strength Index (RSI) depicts DOT price at a level of 48 RSI and bang in the middle of the oversold and overbought boundaries. This suggests prices are balancing out before charting any further bullish action.
Polkadot price prediction: 1-Week chart overview
As can be seen on the 1-Week chart, information shown via the indicators is stark due to Polkadot only recently joining the market.
However, what can be surmised from the 1-Week chart is that the bears have remained in control for the past three weeks as DOT price reaches $4.8. Observing the RSI and the volatility indicators, it can be further surmised that DOT price will see little movement in the week ahead if it continues this pattern.
The On-Balance-Volume (OBV) indicator reveals just how little volume is in play currently. This lack of volume may change as we head towards Christmas but seems to have an opposing relationship to Bitcoin (BTC) price. As BTC price increases, DOT seems to diminish. This is only speculative as we do not have the year’s history to compare it to, but it is certainly apparent in lieu of recent crypto market price movement.
Polkadot price prediction: volatility overview
The Historical Volatility Index (HVI) shows a steep drop in HVI levels when bullish action diminished in early November 2020, and again repeating in late November 2020.
This little data can help us surmise that bearish activity is more accepted at this time for DOT prices and suggest that the DOT market is bearish. If this is correct, it would seem Polkadot is set to reach $5 and then further reduce in price by January 2021.
Polkadot price prediction conclusion: DOT price to reach $5 again, but may see bearish action soon
This Polkadot price prediction expects DOT price to once again reach $5 in the week ahead, but to see prices decrease further into late December 2020.
Observing the Bollinger Bands (BBs), we can see that DOT price has dipped below the BB Basis mid-line as it enters December 2020. If Polkadot dips and remains below this mid-line – while many other cryptocurrencies currently sit above it – it can be predicted that DOT price will only fall further while others increase.
Short-term DOT price may rise to $5 or slightly above, but we may still see a dip below $4.8 before we reach that bullish point.
As historical data is limited, this price prediction should be considered with a pinch of salt as price patterns cannot be fully comprehended at this early stage.