Today Polkadot price dropped to $ 16.30 before hitting the $ 17 level. The DOT remained in a long consolidation channel for the greater part of January and continues to be traded in this price zone.
The cryptocurrency market has had a bullish trend over the past 24 hours, and Bitcoin is leading the rally. BTC observed an increase of 19.07 percent over the period and increased to $ 38,000.
Polkadot price chart
After starting this month with low momentum on both sides, Polkadot price volatility increased sharply on January 12th. The price found bullish support at $ 7.50, which allowed DOT to launch a bullish rally that brought the price to $ 18 before it stopped.
The price has observed a correction at the level and seems to continue climbing above this level. However, DOT has failed to break above this level and has continued to be traded below so far.
What do the technical indicators for DOT say?
Looking at the technical indicators, the MACD is showing rising bullish momentum with the size of the upward histograms in the recent candlesticks. The two EMAs continue to diverge as 12-EMAs suggesting increased buyer pressure. The indicator implies that it will continue to rise unless the price drops below $ 16.5.
It has been for a while as the RSI is neutral and the Polkadot price continues to fluctuate around $ 16.50. The indicator recently rose from 43 to 52.53.
Bollinger bands are currently narrow but expand as the price moves above the indicator’s average line. The indicator shows a low momentum in the markets and points to further consolidation at this level.
How’s the look?
Overall, the four-hour technical analysis gives a strong buy signal supporting a positive price action across 16 timeframes of the 26 key indicators. The analysis shows that none of the technical indicators are showing support for the bearish move, while the remaining ten indicators are neutral and lack support for either side.
The 24-hour technical analysis shares this sentiment to some extent, as 14 of the 24 indicators for this time frame support the bullish change. On the other hand, only one of the techniques gives a sell signal that indicates a negative price move. Meanwhile, the overall analysis gives a reasonably strong buy signal, while nine indicators remain neutral.