TL;DR Breakdown
- Polkadot price expected to continue consolidating at the current price level.
- The closest support level lies at $15.00
- DOT faces resistance in crossing the $18.00 mark
Today, Polkadot price fell to the $16.30 price level before recovering to the $17.00 level. DOT has remained inside a long consolidating channel for the better part of January and continues trading inside the price region.
The broader cryptocurrency market observes a bullish change across the last 24 hours, with Bitcoin leading the rally. BTC has observed a 19.07 percent increase over the period and has risen to the $38,000 mark.
Polkadot price overview: Polkadot price across January
After starting the month with low momentum on either side, Polkadot price volatility increased sharply on January 12. The price found bullish support at the $7.50 level that enabled DOT to initiate a bull rally carrying the price to the $18.00 mark before stopping.
The price observed a correction at the level and seemed to be continuing its climb above the level. However, DOT failed in climbing above the level and has continued trading below the level until now.
Technical indicators
Across the technical indicators, the MACD shows increasing bullish momentum with the size of the histograms increasing in recent candlesticks. The two EMAs continue diverging as the 12-EMA suggesting an increasing buyer pressure. The indicator will remain bullish unless the price falls below the $16.500 mark.
The RSI is neutral and has been such for a while as Polkadot price continues to oscillate around the $16.50 mark. The indicator has recently risen from 43.00 to the current trading point of 52.53.
The Bollinger bands are currently narrow but show expansion as the price moves above the indicator’s mean line. The indicator is suggesting low momentum in the markets, indicating further consolidation at the level.
Overall, the four-hour technical analysis issues a strong buy signal, with 16 of the 26 major indicators supporting a positive price action across the timeframes. The analysis shows that none of the technicals are indicating support for a bearish movement while the remaining ten indicators are neutral, not indicating support for either side.
The 24-hour technical analysis shares this sentiment to a degree as 14 of the 24 indicators for the timeframe support a bullish change across the timeframe. On the other hand, only one of the technicals issues a sell signal suggesting a negative price movement. Meanwhile, nine indicators remain neutral, with the overall analysis issuing a buy signal of reasonable strength.
What to expect from Polkadot price?
Traders should expect Polkadot price to continue consolidating at the current level as the price observes low momentum on both sides. DOT has repeatedly failed in crossing above the $18.00 level, and the buyers continue to defend the $15.00 support level. The asset’s daily trade volume is not very high and observes a mix of buyer and seller pressure as seen in the wave-like price action.
Unless Polkadot observes an increase in its trade volume, DOT will continue trading at the current price level. However, DOT may observe a surge in its trading volume if Bitcoin breaks above the $40,000 mark.
