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Polkadot Price Analysis: DOT trades below $21.5 resistance, another retracement today?

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TL;DR Breakdown

  • DOT moved sideways yesterday.
  • Spike higher was seen overnight.
  • DOT/USD to yet ready to break higher.

Polkadot price analysis is bearish for today as the $21.5 resistance prevents further upside once again. Therefore, we expect DOT/USD to retrace once more and retest the $19 support next.

Polkadot Price Analysis: DOT trades below $21.5 resistance, another retracement today? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market trades in the green over the last 24 hours. BTC has seen a slight gain of 0.24 percent, while ETH is up by 2 percent. Meanwhile, Cardano is up by almost 20 percent and is among the best performers.

Polkadot price movement in the last 24 hours: Polkadot tests $21.5 resistance again

DOT/USD traded in a range of $20.12 – $21.68, indicating mild volatility over the last 24 hours. Trading volume has increased by 18.5 percent and totals $1.61 billion. The total market capitalization trades around $21.1 billion, ranking cryptocurrency in 9th place overall.

DOT/USD 4-hour chart: DOT set to reverse again?

On the 4-hour chart, we can see the Polkadot price action testing the $21.5 resistance again, indicating another retracement to be seen later today.

Polkadot Price Analysis: DOT trades below $21.5 resistance, another retracement today?
DOT/USD 4-hour chart. Source: TradingView

Polkadot price action has traded with a very strong bullish momentum over the last weeks. After establishing support around $10.5, DOT/USD reversed and started to rally towards the previous swing high.

On the 1st of August, DOT broke past the $17.5 resistance and moved substantially higher, indicating a shift in the medium-term trend direction. Earlier this month, DOT/USD retraced to retest the previous swing high resistance as a support and saw further upside from there.

However, as of now, the Polkadot price has extended itself too far without a significant retracement. The current failure to move above the $21.5 mark could be the first sign of a much serious reversal later this week. Therefore, we expect bearish momentum later this week, with the $19 previous support likely retested.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis indicates bearish momentum to follow as the $21.5 resistance could not be breached overnight after several attempts to move higher over the last 24 hours. Therefore, we expect DOT/USD to reverse once more and move towards another retest of the $19 support. 

While waiting for Litecoin to move further, read our articles on BTC Futures, Physical BTC, as well as Proof of Stake vs Proof of Work.

Disclaimer. The information provided is not trading advice. 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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