TL; DR breakdown
- Polkadot price analysis suggests a retracement to $ 33.
- The next level of support is at the $ 34 mark.
- DOT faces resistance at $ 36.
Polkadot price analysis shows that after breaking the $ 35.00 level, DOT encountered strong resistance at the $ 36 level. The resistance caused the price rally to stall and reject the trend, sending DOT to the support level of $ 32.50. While the price has since rebounded, DOT is still struggling to climb above the $ 36 mark.
The broader cryptocurrency market has been observing bearish sentiment over the past 24 hours as most major cryptocurrencies see negative change over the reporting period. The main players include AVAX and ADA, which are down 12.00 and 11.20 percent, respectively.
Polkadot Price Analysis: High volatility when the DOT breaks above $ 35
Technical indicators for DOT / USDT from Tradingview
For all technical indicators, the MACD is bullish as expressed by the green histogram. The indicator crossed over on September 9th and has been bullish ever since. However, a decline in bullish momentum has been seen across the chart over the past 20 hours as DOT struggled to climb above the $ 36.00 mark. Since the rejection, DOT has fluctuated between the $ 36 and $ 33 levels.
The EMAs are currently moving upwards and showing strong buyer activity at the time of going to press. However, the 26 EMA has caught up to the 12 EMA which has seen a decreasing gradient due to selling pressure above the $ 36.00 level.
The RSI is currently neutral but is trading close to the edge of the overbought area near the 70.00 index units. The high position of the indicator leaves little scope for further upward movements in the short term, as this would lead to a destabilization of the price movement.
The Bollinger Bands are wide right now as price volatility has only increased in the past few hours, with the DOT hovering between the $ 33 and $ 36 levels. Currently, the upper bound of the indicator acts as resistance while the midline provides support for the bulls to rest and recover.
Technical analysis for DOT / USDT
Overall, the 4-hour Polkadot price analysis gives a strong buy signal, with 17 of the 26 most important technical indicators pointing to an upward movement over the timeframe. On the other hand, only one indicator emits a sell signal, which indicates a slight declining presence at the current price level. At the same time, 10 of the indicators remain neutral and do not give any signals at the time of writing.
The 24-hour Polkadot price analysis shares this sentiment, showing 16 indicators in favor of the bulls versus three indicators that support the bears. The analysis shows positive sentiment suggesting an upward move for DOT. Meanwhile, the remaining eight indicators sit on the fence, not supporting either side of the market.
What to Expect from Polkadot Price Analysis?
4-hour price chart from Tradingview
Polkadot price analysis suggests high volatility for DOT in the short term. The medium term technical analysis is heavily bullish while the short term indicators show exhaustion. Therefore, traders should expect high volatility in the short term, with a possible drop to the $ 34.00 mark. However, the positive market sentiment would lead to a rapid recovery.
Disclaimer of liability. The information provided does not constitute trading advice. Cryptopolitan.com assumes no liability for investments made on the basis of the information provided on this page. We strongly recommend independent research and / or the advice of a qualified professional before making any investment decisions.