TL;DR Breakdown
- Polkadot price expected to retest 17.50.
- The closest support level lies at $15.00.
- DOT faces resistance in crossing above the $17.00 mark.
Polkadot price has fallen below the $16.00 level after failing to climb above the $17.500 mark. The price has concluded its consolidation with a sharp bearish movement to the $12.5240 mark before recovering to the $17.00 level.
The broader cryptocurrency market also observes bearish sentiment across the last 24 hours, with most cryptocurrencies recording losses over the period. These include Bitcoin and Ethereum, the king and queen of the crypto market. Bitcoin’s price has fallen back to the $35,000 mark while Ethereum has retraced to the $1,300 price level.
Polkadot price overview: Polkadot price across the last ten days
Polkadot price had a slow start to 2021 as the price kept trading with significantly low volatility. It was not until the 13th of January that the price broke above the $10.00 level, rising rapidly to the $15.00 level. The sharp movement caused the price to observe a correction to the $12.50 mark, but the strong bullish pressure persisted.
Subsequently, the price continued to rise, reaching $17.50 before meeting strong resistance. Since then, the Polkadot price hovered below the mark until yesterday when the price fell below the $16.00 level. Today the price found support at $15.00, but it is uncertain whether DOT will hold out above the level.
Technical indicators
Across the technical indicators, the MACD shows bearish momentum that seems to be increasing, as highlighted by the increasing size of the histogram. The two EMAs continue to diverge further as DOT continues its descent. The indicator may suggest a bullish reversal if the DOT price holds above the $15.00 mark.
The RSI is still neutral and does not issue any signals, and the indicator is returning towards the mean position at 50.00. The indicator’s neutral position shows room for movement in either direction, while the incline suggests increasing bullish pressure in the markets.
The Bollinger bands are expanding downwards, suggesting increasing price volatility for DOT in the short term. The indicator shows increasing bearish momentum with potential for movement below the $15.00 mark.
The four-hour technical analysis issues a buy signal with 12 of the twenty major technical indicators supporting a bullish movement. However, the signal is not very strong as eight indicators are issuing sell signals while another eight indicators remain neutral.
The 24-hour technical analysis shares this bullish sentiment with 14 indicators suggesting a bullish rise. The buy signal is stronger than the four-hour analysis as only four indicators are issuing sell signals while eight remain neutral.
What to expect from Polkadot price?
Traders should expect Polkadot price to break above the $16.00 mark, with the price expected to retest $17.50 in the coming days. The positive technical analysis confirms this prediction suggesting an increasing bullish momentum in the coming hours.
Conversely, if Polkadot price falls below the $15.00 level, the asset would start a bearish rally causing the price to fall to the $12.50 level. Further downwards movement may mean a fall to the $10.00 level.
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