Connect with us

Polkadot

Polkadot Price Analysis: DOT/USD to break above $50 next

Published

on

  • Polkadot price analysis is bearish today.
  • DOT/USD rallied back to $46 resistance.
  • Bullish momentum likely exhausted.

Polkadot price analysis is bearish today, as the market has approached significant resistance at $46 after a strong rally earlier in the day. As a result, we anticipate DOT/USD to decline and establish another higher low.

A parabolic extension is drawn to indicate how far momentum may have carried DOT/USD during the impulsive wave. A secondary channel is drawn to indicate how the market could range before breaking lower.

Polkadot price movement in the last 24 hours: Polkadot sets higher low, moves to $46 previous high

We believe DOT/USD has likely rallied enough for now, as momentum appears to have exhausted itself at this level, evidenced by how price has approached but not broken through the upper boundary of a secondary ascending wedge. The structure of this wedge is very similar to that of an upward sloping channel. The market may also be approaching another leg lower as it tests the first significant support at $44 again.

If this level holds, the market should resume its advance.

Advertisement

If not, expect DOT/USD to decline to at least $41, where it will encounter significant support at the 78.6% retracement. This area is also intersected by a Fibonacci 61.8% retracement, which could elicit further demand if Polkadot price analysis turns bearish below $45.

On the other hand, the recent upside in Polkadot price analysis was likely caused by traders closing their short positions ahead of an expected correction, which explains why momentum accelerated sharply during today’s rally. Also, note how volume has declined during both legs higher – indicating reduced supply where prices are currently trading.

If this dynamic persists, we expect DOT/USD to rebound off the $44 support level or higher, at least for one more leg higher.

Advertisement

However, if the price breaks below $45, it would confirm our bearish outlook on DOT/USD mentioned above.

DOT/USD 4-hour chart: DOT to reverse below $46?

On the 4-hour chart, we can see a quick move to the $46 resistance, and likely selling pressure will increase over the following hours, moving the market lower again.

Polkadot Price Analysis: DOT/USD to break above $50 next 1
DOT/USD 4-hour chart. Source: TradingView

On H4, the pair seems to have found a temporary top at $46. Today’s rally was likely just another impulsive wave of a more significant bearish trend. This view is supported by the lack of volume during the latest upside move. Bears are likely to on these lower volumes by driving DOT/USD below $41, which will encounter significant support at the 78.6% retracement.

Price action retracting off of the upper boundary of an ascending wedge indicates high bullish momentum, meaning that any break above $46 would be short-lived. The next major resistance is located at $54.38, corresponding to the 161.8% Fibonacci extension level. A successful long-term breach here may signal another wave higher towards $62 and beyond; however, we believe that today’s advance is likely just a corrective wave before selling resumes in Polkadot price analysis.

Advertisement

However, a higher low was also set, indicating bullish momentum. Polkadot price action broke past the local swing high earlier today, confirming bullish momentum. Likely, DOT/USD will set another higher low over the next 24 hours before attempting to break the $46 major resistance.

Polkadot Price Analysis: Conclusion 

As stated earlier, Polkadot appears to have formed a temporary top at $46 after surging multiple times today alone. As long as the market remains above the major support at $44, then we expect the market to continue towards $50+.

News Source

Advertisement

Polkadot

Polkadot price finds stable support that may help DOT resume bull run

Published

on

  • Polkadot price finds buyers at a primary support zone.
  • A three-week correction cycle is complete and resumption of the bull market likely.
  • New all-time highs are in sight.

Polkadot price has a very healthy-looking weekly Ichimoku chart, showing significant support. Compared to its peers, Polkadot price faces limited downside risks.

Polkadot price bounces, a renewed push towards $70 likely

Polkadot price recently ended  a strong sell-off triggered by a powerful cycle in Gann analysis known as Gann’s ‘death cycle.’ The ‘death cycle’ is a seven-week (49 to 52 day) cycle that Gann warned could terminate any move that showed persistent price movement at a high slope. Additionally, a three-week correction after the ‘death cycle’ is the most common reversion period.

Polkadot is trading against the most powerful support level combination possible on its weekly chart. The 2021 Volume Point Of Control and the weekly Kijun-Sen share the $33.50 value area, which is exactly where Polkadot has bounced. To now confirm a resumption of the prior uptrend, Polkadot price will need to return to and close above the weekly Tenkan-Sen at $42.00.

The Relative Strength Index shows some initial support against the first oversold level in the bull market (50). If 50 holds, then a bottom may be in for Polkadot. Additionally, the Composite Index has generated hidden bullish divergence – a condition that is often a precursor to a resumption of a prior bull market. 

Advertisement

DOT/USDT Weekly Ichimoku Chart

Downside pressure and risks remain for Polkadot price, however. If the $33.50 value area fails as support, the next support zone to watch is the top of the Cloud (Senkou Span A) at $29.50. Any daily or weekly close below $29.50 could trigger faster and deeper selling pressure because the Volume Profile becomes thinner, the lower price moves. In other words, the lower Polkadot price moves below $29.50, the faster and easier it is for it to make further declines.

News Source

Advertisement
Continue Reading

Polkadot

Polkadot price analysis: DOT to test support at $32, support at $33.9 already crushed

Published

on

  • Polkadot price analysis is bearish today.
  • Resistance for DOT/USD is present at $34.4.
  • Support for DOT/USD is present at $32.

The Polkadot price analysis is bearish today. DOT/USD hasn’t found support yet, as the support at $33.9 has already crashed under selling pressure. However, DOT got some support around $33, but the downtrend has again begun as the bears have taken over control over the price function again. It is expected the DOT will continue to lose value today before recovering in the next trading session.

Overall the cryptocurrency market has observed negative sentiment with a bearish trend being followed by most coins, including the Bitcoin and Ethereum reporting losses from one percent to six percent mostly, with some coins reporting losses up to 11 percent today.

DOT/USD 1-day price chart: Bullish efforts declined

The 1-day price chart shows the price has decreased considerably today, and Overall DOT has been following a downtrend since 9th November, when the coin started to step down from the $53 level and has reached $33.7 at the time of writing today. The DOT/USD traded in a range of $35 to $32.8 today. The crypto pair reports a loss of more than six percent over the last 24 hours and a loss of 19.22 percent over the past week. The trading volume has also decreased today, but not much. However, the market cap has decreased by 5.49 percent.

Polkadot price analysis: DOT to test support at $32, support at $33.9 already crushed 1
DOT/USD 1-day price chart. Source: TradingView

The volatility is high for Polkadot, and the Bollinger bands are traveling downwards, which is not a good sign for the coming day. The lower limit of the Bollinger bands at $32.9 represents a support level for DOT to hold on, and the mean average at $41.9 represents the resistance zone for DOT, but it’s not relevant in the current scenario.

The relative strength index (RSI) has also stooped low to index 34. The RSI still maintains its downwards slope indicating the selling activity in the market. The moving average (MA) is present above the price level at the $38 mark.

Advertisement

Polkadot price analysis: Recent developments and further technical indications

The 4-hour Polkadot price analysis shows the price breakout was downwards from the start of today’s session, and most of the damage was observed during the first four hours. Thereon some bullish efforts were observed, but bearish pressure ruled out any bullish activity and continued the downtrend.

Polkadot price analysis: DOT to test support at $32, support at $33.9 already crushed 2
DOT/USD 4-hours price chart. Source: TradingView

The volatility on the 4-hour chart has increased as the upper Bollinger band has reached $40 and the lower band is at the $31 mark, and the mean average of the Bollinger bands is forming at the $36 mark. The MA is present at the $34 mark, and the RSI still travels further low at index 33.

Polkadot price analysis conclusion

The Polkadot price analysis shows that the coin seems to be continuing the downtrend for today. If the price comes further down, then the next support zone is present at around the $31.6 level. However, traders can expect DOT to trade above the psychological mark of $30 for today.

News Source

Advertisement
Continue Reading

Polkadot

Polkadot Price Prediction: DOT bears threaten 19% downswing

Published

on

  • Polkadot price is vulnerable to a 19% decline after breaking below a critical support trend line. 
  • The layer-1 token is looking to test the reliability of key support levels before recovery could be expected.
  • DOT must hold above $32 to prevent further losses. 

Polkadot price action has been muted, as DOT has failed to galvanize investors’ enthusiasm. The layer-1 token continues to slide lower, recording lower lows and lower highs. The governing technical pattern suggests that the token is likely to tag $27 if a key support level fails to hold.

Polkadot price to test reliability of support

Polkadot price has sliced below the lower boundary of an ascending parallel channel on the daily chart, suggesting a bearish forecast ahead for the token. DOT could continue to slide lower as investors engage in a period of profit-taking. 

The first line of defense for Polkadot price is at the 50% retracement level at $32.74, then at the 200-day Simple Moving Average (SMA) at $28.81 which acts as a sturdy foothold as it coincides with the support line given by the Momentum Reversal Indicator (MRI).

However, if the aforementioned support fails to act as a reliable line of defense for Polkadot price, DOT could fall further to hit the bearish target projected by the governing technical pattern at $27.46, where the 61.8% Fibonacci retracement level also sits.

Advertisement

If selling pressure eases, the bulls could be incentivized to push Polkadot price higher toward the first resistance at the 100-day SMA at $37.11. An additional spike in buy orders could see DOT tag the 38.2% Fibonacci retracement level at $38.02.

To prevent further losses, buyers should target the lower boundary of the parallel channel at $40.58 next. However, additional hurdles for Polkadot price may emerge at the 21-day SMA at $42.10, then at the 50-day SMA at $43.68.

DOTUSDT

DOT/USDT daily chart

If the bulls manage to reverse the period of underperformance, slashing through the aforementioned obstacles, Polkadot price could aim for the middle boundary of the governing technical pattern at $54.20, located near the MRI’s resistance line and the token’s all-time high.

Advertisement

News Source

Continue Reading