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TL;DR Breakdown
- Polkadot price analysis remains sluggish as the price is rangebound
- The DOT/USD pair has bounced from critical support at $14.00
- The recovery rally has seen the pair bounce, but doubts remain
Polkadot price is behaving like most other altcoins when it comes to the current relief rally. After declining to $13.00, the pair moved upwards to post a high of $16.70. The pair is currently trading near the $16.33 level and is looking for rangebound in the near term. The broader crypto market remains in a sluggish mode as the altcoins await a direction.
The pair tested lower support at $13 earlier this week due to market-wide weakness. There are signs of a rebound in the current recovery, but the pair is unlikely to sustain the momentum due to low volumes. As per Polkadot price analysis, the present uptrend is bound within the Bollinger Bands with a range of $14.36 to $17.11. However, the Bollinger Bands themselves are shrinking, which means the range with tightening further.
Polkadot price movement in the last 24 hours: DOT barely clings to gains
Even though the current rally seems to reach the upper Bollinger Band, the price is unlikely to remain at elevated levels. The inherent weakness is visible in Polkadot price analysis, which is gradually turning bearish. The downtrend that began earlier this week has also posted new lows on the daily charts making the long-term outlook bearish according to Polkadot price analysis.
The support at $13 and then at $14 has proven to be an excellent bounce-back point. The technical indicators are not in a hurry to jump alongside the price displaying the weak volumes data. The slightly bullish crossover that was visible in the first quarter of the day is now nullified. The candlestick patterns are getting mellow and show sluggish price action.
Additionally, the converging Bollinger Bands show that the price will be tightly controlled in a range with limited volatility. Polkadot price analysis suggests that the bearish pressure will become dominant as the price moves closer to the $18.00 resistance level. Even the slightest price gains can trigger another round of selling as the buyers would book profit at higher levels.
DOT/USD 4-hour chart: DOT enters another consolidation phase
The progression in DOT/USD is slowing down as the pair is ready to enter another round of stagnation. There is no negative news that may accelerate the fall. Thus, the decline will be gradual, where the price may reach $13 once again.
The technical indicators show no signs of an immediate uptrend resuming after the pair fell from the $21.50 support point. The cascading effect from the $21.50 support region will only accelerate further and may see DOT/USD reach the $11.00 support area. The bulls have defended the $13.00 support zone, but the volume data is weak, meaning the recovery is built upon thin liquidity.
A horizontal support line is emerging in parallel to the descending price channel. Thus, the recent $13.00 support region will be seen as the new support area. Furthermore, there is additional support at $10.00, where long-term investors may raise concerns. The RSI is at 42, signifying a neutral zone with a bearish bias.
Polkadot price analysis conclusion: Recovery to $16 may vanish soon
Traders should remain cautious about the current price action. There are subtle hints of another downturn in the present context. Polkadot price analysis shows that the DOT/USD pair follows the common altcoins in terms of price action. Thus, there is a recovery phase after a sharp decline to the lower support.
Polkadot remains vulnerable to more decline as the pair reaches out to test lower support areas. Like other altcoins, the pair reacts to negative crypto news, especially the Chinese crypto mining crackdown.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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