TL;DR Breakdown
- Polkadot price expected to climb to $16.00.
- The closest support level lies at $15.00.
- DOT faces resistance in crossing above the $18.00.
Polkadot price climbed above the $18.00 level but failed to hold a support level above the mark. As such, DOT fell below the mark, and the price action has observed a steady drop until now, with the price falling back to the $15.00 support level.
The broader cryptocurrency market observes a bearish change across the last 24 hours as most cryptocurrencies record a negative price change across the period. These include Bitcoin and Ethereum that observe a 3.62 and a 0.70 percent decline in the last 24 hours.
Polkadot price overview: Polkadot price across the last ten days
Polkadot had a slow start to 2021 as the price continued consolidating below the $10.00 level for the first 11 days of January. On the 12th of January, however, the price found bullish support and quickly gained momentum to break above the $10.00 mark. The strong bullish momentum only grew in the following days carrying the price to the $17.500 level.
The price faced strong bearish pressure at the level and could not close above the mark. As such, DOT fell below the level to the support level at $15.00. Since then, the price has oscillated between the $18.00 and the $15.00 mark with little movement outside the region.
Technical indicators
Across the technical indicators, the MACD shows increasing bearish momentum as the price continues to descend. The two EMAs continue diverging, suggesting an increasing bearish pressure on the price action. The indicator would suggest a reversal if the price is able to hold above the $15.00 mark.
The RSI is neutral but hands low, suggesting a bearish momentum. However, the indicator is not issuing a buy signal suggesting Polkadot price still has room for further downwards movement before a correction. The indicator’s slope has decreased at the 35.00 mark suggesting an increasing buyer pressure.
The Bollinger bands are currently expanding downwards, suggesting an increasing bearish momentum. However, the indicator may show a broader consolidation if DOT continues trading above the $15.00 mark.
Overall, the four-hour technical analysis issues a sell signal as 11 of the 26 major technical indicators support a bearish price action. On the other hand, the signal is not very strong as eight indicators are issuing buy signals suggesting a bullish change. Meanwhile, seven indicators remain neutral and do not indicate support for either side.
The 24-hour technical analysis contradicts this sentiment as the analysis shows nine of the 24 indicators in favor of a bullish movement. On the other hand, only five indicators show support for a negative price movement while the remaining 10 remain neutral.
What to expect from Polkadot price?
Traders should expect Polkadot price to defend the $15.00 level before the price makes recovery to the $16.50 level. The positive daily technical indicators and the strong bullish pressure at the $15.00 level reaffirm this suggestion.
However, the two technical analyses show divergence, which suggests that Polkadot price may not recover soon and instead fall below the $15.00 mark. If DOT falls below the $15.00 mark, the next support level is located at the $12.50 level.
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.
