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Polkadot price analysis: DOT out of the woods as bulls target $28

4 min read

TL;DR

  • Polkadot price analysis shows that the pair is grinding towards $20.00 support
  • DOT/USD dangerously close to long-term support at $19.65
  • Bears will attempt to push the pair towards the $15 level next week
  • Buyers are looking for lower levels where technical indicators reach an oversold region
Polkadot price analysis: DOT out of the woods as bulls target $28 1
Cryptocurrency heat map by Coin360

Polkadot once again gets rejected from significant resistance at $26.50 as the bulls cannot muster enough volumes. The bears are once again in control as the pair moves towards the $20.00 support zone and near the lower end of the contracting Bollinger Bands. As per Polkadot price analysis, the small candles on the hourly charts show muted price movement as the traders await next week for direction.

The simple moving averages are all sloping downwards, indicating the inherent weakness in the price. The bears went short aggressively near the $26.50 level and took the price towards $18.66 lows today. However, short-covering and profit booking saw the price rally towards $22.00. But the short-term prospects look bleak as the crypto market reels under the negative sentiment according to Polkadot price analysis.

In case the pair closes below $20.00, DOT can slide towards $15.00 support. As per Polkadot price analysis, further consolidation is on the cards for DOT/USD. The pair would need support from the broader crypto market to make headway again towards the $28.00 level.

Polkadot price movement in the last 24 hours: Struggling between Bollinger Bands

The DOT/USD pair has been moving in a tight range between $21.42 and $18.66. The charts are filled with short candles, indicating little room for either bear and the bulls to take any concrete position. The Bollinger Bands itself are contracting, which reflects the drying up liquidity in the market. However, low liquidity can be attributed to the weekend trading session, which will change as a new week begins in a few hours.

Polkadot price analysis shows that the pair is struggling to maintain lower support levels. So far, the bulls have defended the $16.00 support zone with aggressive buying. However, if the sellers continue their onslaught, the pair can see $15.00 soon on the hourly charts. Such a bearish move can also disrupt the longer time frame charts.

On the other hand, the bulls are striving to touch $26.50 resistance with their eyes all set on $31.28 highs. A close above $26.50 will indicate that bullish strength is back in DOT/USD pair. The consolidation has been stretched too far, considering most other pairs have performed relatively well. Polkadot price analysis shows that the sharp fall from $26.50 on the charts shows that the inherent bullish strength is so far missing from the DOT/USD pair.

DOT/USD 4-hour chart: Bulls looking towards technical indicators

Polkadot price analysis: DOT out of the woods as bulls target $28 2
Polkadot price chart by TradingView

It seems that the DOT bulls are seeking divine intervention from the technical indicators. Most technical indicators are either neutral or bearish. The dilemma is reflected in the volumes. The RSI is currently near 46 level with a flat slope. Also, the MACD is showing confusing signs with no precise cross-over on the charts.

Polkadot is not mimicking any major cryptocurrency in terms of price movements especially BTC which recovered well. Polkadot price analysis shows more consolidation than other altcoins, and the see-saw price action is not helping matters either. The daily charts are signaling a neutral bias as the pair consolidates going further. As the price deteriorates further, the support zones are $19.68, and $16.00 will crumble, inducing further weakness in the pair. A slight comeback from $20.00 to $28.00 won’t serve the purpose much if the pair keeps sliding lower after every bounce.

Polkadot price analysis conclusion: DOT stuck in range despite sound fundamentals

Despite major comebacks and bullish bounce on the charts, the DOT/USD pair still has a long way to go before any bulls return. The failure to move beyond the $28.00 figure shows that the pair has an inherent weakness. The asymmetrical triangular pattern further threatens the pair. The 50-day exponential moving average will not let the pair reach the $26.00 level anytime soon.

The entire Polkadot ecosystem holds lot of potential, and it is undoubtedly a gem in the realm of cryptocurrency. The current bearish phase in the crypto market is drowning the pair under crucial support levels. The following week should see the bulls return to the DOT fold as the pair is likely to end its consolidation phase.

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.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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