- Polkadot price expected to break above the $25.00 mark to climb to $27.50.
- The closest support level lies at $22.50.
- DOT faces resistance in crossing above the $24.50 mark.
Polkadot price was rejected from the $24.00 mark yesterday, falling to the $22.50 support level. The price found support at the level that enabled the price to recover to the $24.00 mark, eventually crossing above.
After consolidating for the latter part of January, Polkadot price finally observed a breakout above the $17.50 mark in early February. The price rose to the $20.00 level but faced resistance in leaving the mark. After consolidating at the level for five days, the price broke to the $22.50 price level and faces strong resistance in climbing to the $25.00 mark.
The broader cryptocurrency market observes strong bullish movement across the last 48 hours, with Bitcoin price breaking above the $45,000 level and currently trading near the $47,000 mark. Similarly, Ethereum has broken above the $1,500 level and currently trades near the $1,800 mark. Other major cryptocurrencies also record significant profits across the period.
DOT/USD Technical indicators
Until yesterday, the MACD was bullish but showed declining bullish momentum as observed by the declining size of the green histograms. However, the MACD did not exhibit a bearish reversal as the price found support at the $23.00 mark. Currently, the indicator shows increasing bullish momentum as the EMAs continue diverging.
The RSI was neutral until a few hours ago but now shows an overbought Polkadot price. The indicator is currently trading above 70.00. However, the indicator is inclined upwards, suggesting strong buyer pressure, and while the RSI issues a sell signal, the strength of the signal is not strong.
The Bollinger bands are currently expanding, suggesting an increase in Polkadot price volatility. However, the expansion is restricted by the resistance at the $24.00 mark. The indicator is currently expanding upwards, suggesting bullish dominance.
Overall, the four-hour technical analysis issues a strong buy signal, with 16 of the 26 major technical indicators supporting an upwards price movement. On the other hand, only three indicators suggest a bearish retracement below the current price level. Meanwhile, seven indicators remain neutral, not issuing support for either side.
The 24-hour technical analysis shares this sentiment as the analysis shows 15 of 24 indicators in favor of an upwards movement against two suggesting a downwards movement. Meanwhile, seven indicators are sitting on the fence, not issuing support for either side.
What to expect from Polkadot price?
Traders should expect Polkadot price to observe sideways movement at the $24.00 level for a while before the price breaks out to test the $25.00 mark. The positive technical indicator and the rising trade volume suggest a bullish breakout to the $27.50 mark.
Conversely, if Polkadot price falls below the $22.50 support level, Polkadot price can be expected to return to the $20.00 mark. Further downwards movement seems unlikely given the technical analyses and the bullish sentiment persisting in the markets.
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.