The Polkadot price shows a horizontal performance. DOT / USD is expected to move around $ 38 for the next few days.
The general market has been trading with a huge loss in the last 24 hours. Bitcoin lost 12 percent and returned to around $ 50,000. Ethereum also fell sharply and fell 11%. Dogecoin, one of the major altcoins, is one of the worst performers as it loses just over 20 percent.
The DOT / USD opened at $ 40.31 yesterday following a strong upward momentum and retested the key resistance area at $ 42. At the moment, DOT / USD has fallen again to test support at $ 35, and from this it seems that the market will likely continue to move sideways this week.
The DOT / USD price moved in the range of $ 33.15 – $ 42.41, indicating great volatility over the past 24 hours. Trade volume increased by 150 percent and reached $ 5.8 billion. Meanwhile, the total market cap is around $ 35.5 billion, placing the cryptocurrency in 8th place overall.
On the 4-hour chart, we can see a sharp rise towards resistance at $ 42 and an equally strong retracement in recent hours.
The market was doing well after recovering to the $ 32 mark on Tuesday. From there, the $ 42 resistance was retested but came with a strong rejection.
Overall, Polkadot is still struggling to regain its bullish momentum, as seen in January and February. After setting a new all-time high above $ 46 in early April, DOT / USD rose sharply to $ 48.
Recently, the DOT rose to the $ 32 level and reached a lower level. From there, another retest of the previous high around $ 42 was conducted indicating that a trading range has been formed. This caused a very volatile price action over the past 24 hours, and both the $ 35 support and the $ 42 resistance were tested within a few hours as the market was unsure where to go next.
Therefore, a clear break from the consolidation area is needed before we can start predicting where the Polkadot price will go next. If the DOT breaks above the $ 42 resistance, we expect a rise to the next major support at $ 46. Alternatively, if the DOT / USD drops below the $ 32-35 support area, we will see a move towards the low of $ 28 in several weeks, which will be a very bearish signal for overall market development in the coming months.