- Polkadot price analysis suggests recovery towards $50.00
- The closest support level lies at $44.00
- DOT faces resistance at the $47.00 mark
The Polkadot price analysis shows that after failing to climb above the $54.00 mark, the sellers broke the $50.00 support level as DOT returned to the $44.00 mark. Currently, the price has climbed back above the $45.50 mark as the buyers regain momentum.
The broader cryptocurrency market has observed a bullish market sentiment over the last 24-hours as most major cryptocurrencies record positive price movements. Major players include ICP and AVAX, recording a 5.76 and a 4.81 percent incline, respectively.
Polkadot price analysis: DOT climbs to $45 as bulls defend $44 support
Across the technical indicators, the MACD is currently showing bearish momentum, as exhibited by the red histogram. The indicator currently shows a decreasing bearish momentum as expressed by the lighter shade of the histogram. The MACD exhibited a bearish crossover on November 9 and has remained in the region since then as the Polkadot price fell from the $50.00 level.
The EMAs are currently stabilizing below the mean as the price action finds support at the $45.00 mark. The 12-EMA is moving upwards as the price tries to climb at the $46.00 mark. Meanwhile, the 26-EMA moves horizontally as the 26-day moving averages still show a bearish bias.
The RSI is currently neutral and trades at a low position at 35.69 index units. Currently, the indicator is moving horizontally, suggesting low activity from either side of the market. Overall, the RSI’s neutral position leaves room for volatile price movement in the upwards direction. On the other side, DOT has little room for further downwards movement across the short term.
The Bollinger Bands are currently wide but show convergence as the price action slows around the $45.00 mark. As the price action consolidates below the indicator’s mean line, traders can expect the indicator to converge downwards, setting up a lower resistance level for DOT in the short term.
Technical analysis for DOT/USDT
Overall, the 4-hour Polkadot price analysis issues a sell signal as 14 of the 26 major technical indicators support the bears across the timeframe. On the other hand, only two of the indicators support the bulls showing no significant buying activity in the markets. Meanwhile, the remaining ten indicators sit on the fence and do not issue any signals at press time.
The 24-hour Polkadot price analysis contradicts this sentiment and presents a neutral sentiment with nine indicators leaning towards the sellers while eight support the buyers. Overall, the analysis issues a neutral signal with a slight bearish bias suggesting a struggle of dominance between the bulls and the bears. At the same time, nine indicators do not lean towards either side of the markets, further increasing the confusion.
What to expect from the Polkadot price analysis?
The Polkadot price analysis shows that the bulls struggled and failed in climbing above the $54.00 price level, causing the support at $50.00 to collapse. After setting up multiple lower highs, the price had fallen to the $44.00 mark but has since recovered above the $45.50 mark.
Currently, traders should expect the buyers to defend the $44.00 mark as the price returns to the $50.00 mark. While the technical analyses show bearish dominance, the short-term indicators show bearish exhaustion suggesting a trend reversal is imminent as further downwards movement is unlikely given the bullish sentiment of the markets.
Polkadot Forecast DOT/USD December 8, 2021
DOT/USD are trading at 29.18 and continue to move within the correction and bearish channel. Moving averages indicate a short-term bullish trend for Polkadot. Prices went up from the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of the rise from the current levels. At the moment, we should expect an attempt to develop the growth in the value of a digital asset and a test of the resistance level near the 32.05 area. Where can we expect a rebound down again and the continuation of the fall in the Polkadot rate with a potential target below the level of 24.05.
Polkadot Forecast DOT/USD December 8, 2021
In favor of reducing the DOT/USD quotes, a test of the trend line on the relative strength index (RSI) will come out. The second signal will be a rebound from the upper border of the descending channel. Cancellation of the coin falling option will be a strong increase in the value of the asset and a breakdown of the 35.55 area. This will indicate a breakdown of the resistance area and a continued rise in the cryptocurrency rate with a potential target above the level of 42.05. With the breakdown of the support area and closing of quotations below the level of 27.05, we should expect confirmation of the development of the bearish trend for Polkadot.
Polkadot Forecast DOT/USD December 8, 2021 suggests an attempt to correct and test the resistance area near the level of 32.05. Where can we expect a rebound and the continuation of the fall in DOT/USD to the area below the level of 24.05. An additional signal in favor of reducing Polkadot will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall option will be a strong growth and a breakdown of the 35.55 area. This will indicate a continued rise in the cryptocurrency with a target above the level of 42.05.
Polkadot price to return to $40 if near-term support holds
- Polkadot price lost nearly 30% of its value during the Saturday flash crash.
- A strong recovery indicates Polkdaot may be positioned for another leg higher.
- Downside risks remain, and risks must be monitored.
Polkadot price has substantially recovered since hitting a low of $23.95. A return above the $30 level gives buyers and long-term hodlers significant psychological support that Polkadot may, again, move higher.
Polkadot price must close above $32 before it can test $40
Polkadot price faces near-term resistance against the 38.2% Fibonacci retracement at $31.08 and the Tenkan-Sen at $31.66. It will need to close above both levels to prevent any near-term continuation of selling. Ideally, there would be enough momentum to close above the Kijun-Sen at $36, but that may not be possible.
After Saturday’s flash crash, an unfortunate event is the conversion of the Relative Strength Index from bull market conditions to bear market conditions. This does not mean or imply that Polkadot is entering into a bear market, but that momentum has dwindled enough to generate some warnings.
Despite the conversion to bear market conditions in the Relative Strength Index, there are some bullish signs. First, there is a regular bullish divergence between the candlestick chart and the Composite Index – hinting at a bullish reversal. Additionally, the Optex Bands oscillator is moving above and out of the extreme oversold levels it has been in.
DOT/USDT Daily Ichimoku Chart
Considering the present position of the Relative Strength Index, Composite Index, and Optex Bands, a breakout above $32 would likely have enough momentum to see Polkadot price test the Senkou Span B at $40 as resistance.
Failure to close above the Tenkan-Sen could see Polkadot return to the 50% Fibonacci retracement at $26.
Polkadot price analysis: DOT to retest support at $27.2, as price steps down to $28.7
- Polkadot price analysis is bearish today.
- Resistance for DOT/USD is present at $33.6.
- Support for DOT/USD is present at $27.2.
The Polkadot price analysis is bearish today as a further decrease in price has been observed. The price has been devalued till $28.7 today as well after encountering extreme loss yesterday when the coin crashed from $33.7 down to $29.3 while swinging as low as $27 at a time. The DOT/USD has been on a downtrend since 5th November, and today it completed a month of being on the decline, setting a lower low for the last two months. Currently, the price had come below the consolidation level of the month of September before it started its journey towards the higher side.
DOT/USD 1-day price chart: Downside continues as market pressure still persists
The one-day Polkadot price analysis is showing a bearish trend for today as the price has been depreciated today as well. The bearish momentum has been continuing over the past few weeks, and today, the trend is the same. The price has been lowered to the $28.7 level after the latest drop. The moving average indicator (MA) is present at the $34.8 mark above the price level.
The Relative Strength Index (RSI) is present at index 28 in the oversold region, indicating unfavorable circumstances for DOT. The volatility has been on the higher side for a long time, and the situation is the same volatility-wise. The upper Bollinger band value is $45, whereas the lower Bollinger band value is $29, and the price is trading below the lower value. The Bollinger bands are maintaining an average of $37.
Polkadot price analysis: Recent developments and further technical indications
Yesterday’s drop in price has been quite damaging to the market value of DOT. The current price is still below the moving average, whose value is present at the $29 mark on the 4-hour chart. The price is going up once again as a bullish trend has been observed during the last four hours. Although the price recovered earlier for a brief period yesterday but decreased again, and the most recent trend is going in favor of bulls.
The Bollinger bands indicator average has been maintained at $32, whereas the upper Bollinger band is showing a $39 value, and the lower band is showing a $25 value, representing high volatility range for DOT. The RSI curve is floating just at the borderline of the neutral and oversold zone at index 30.8, heading slightly up due to the last green candlestick, but still, the pressure seems to be there.
The price has been trading towards the downward direction if we see the DOT’S progress for the past month. This is why the technical indicators chart for DOT/USD is indicating a bearish trend, with only one indicator on buying position, eight indicators on neutral position, and 16 indicators on selling position.
Polkadot price analysis conclusion
The Polkadot price analysis report shows a downward movement in price has been observed during the last 24-hours, which is a continuation of the bearish trend. The price has dropped down to the $28.7 level because of the constant downtrend that has been following for the past few days and took a steep plunge yesterday. The price might go lower in the coming hours as the last candlestick on the four hours price chart might also turn red, as the momentum is not there for bulls, and the RSI is indicating the same.