- Polkadot price faced strong resistance as it attempted to move above $ 19 and began consolidating above the $ 17.50 mark. After testing the resistance level earlier today, Polkadot has continued to decline towards the $ 17.50 support. So will DOT rise?
Polkadot price faced strong resistance as it attempted to move above $ 19 and began consolidating above the $ 17.50 mark. After testing the resistance level earlier today, Polkadot has continued to decline towards the $ 17.50 support. So will DOT rise?
The cryptocurrency market has been seeing an upward trend for the past 24 hours as most of the major coins have experienced a positive change. These include the king and queen of the cryptocurrency market, Bitcoin and Ethereum, which recorded a gain of 7.44 percent and 7.75 percent respectively.
The Polkadot price made a slow start to 2021 as the price remained below the $ 10 level for the first 11 days of January. On January 12, the DOT found bullish support at $ 7.50 and launched a bullish rally that pushed the price above the $ 10 level. This rally brought the price to $ 17.50.
After reaching this level, the DOT faced strong resistance to climb above it as the price fluctuated with the occasional drop to the $ 15 mark. Today, the price made another attempt to break above the $ 19 resistance level and break out of $ 17.50 but failed. The price then returned to the $ 17.50 support.
What do technical indicators tell?
According to the technical indicators, the MACD has shown a bearish trend and is currently maintaining the same momentum. The two EMAs are still close, indicating that bearish momentum is weak. As the Polkadot price continues to fluctuate around $ 18, it’s not uncommon to see a MACD reversal.
However, it does not seem like the indicator will show strong momentum until the price drops below $ 17.75.
The RSI is neutral and close to the 50 mark indicating low momentum on both sides. The indicator is now moving downward, but with a decreasing slope suggesting a decreasing pressure.
Bollinger bands are currently narrow and suggest more convergence as price volatility continues to decline. The contraction indicator shows that the Polkadot price may soon see a sharp increase in price volatility.
Overall, the four-hour technical analysis gives a buy signal as 16 of the 26 main technical indicators are showing a bullish move. On the other hand, only two indicators support a bearish move, while the remaining eight remain neutral and do not lean to either side.
The 24-hour technical analysis shares this sentiment, as 15 of the 26 technical indicators show a bullish sentiment and only two indicators signal a buy. The remaining nine indicators are neutral.
Will Polkadot rise?
Traders can expect the Polkadot price to retest the $ 19 resistance level. Positive technical indicators and rising trading volume are trending upwards towards $ 20.
In the opposite direction, if Polkadot price breaks below the $ 17.50 support level, it could revisit the $ 15 support level. Any further downward movement could result in a drop to $ 12.50.