Polkadot price analysis: DOT recovers $18.00 support but can the bulls hold on?
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TL;DR Breakdown
- Polkadot price analysis suggests sideways movement below $20.00
- The closest support level lies at $18.00
- DOT faces resistance at the $19.00 mark
The Polkadot price analysis shows that despite the strong bearish activity, the bulls are able to fight back and have recovered from the lows of $16.17 to the current level above $18.50. However, strong bearish pressure still weighs on the price action making upwards movement difficult.
The broader cryptocurrency market has observed a heavy bearish market sentiment over the last 24-hours as most major cryptocurrencies observe significant negative price movements. Major players include BTC and ETH recording a 7.28 and an 11.50 percent decline respectively.
Polkadot price analysis: DOT faces resistance at $19.00
Across the technical indicators, the MACD is currently bearish as expressed in the red color of the histogram. Furthermore, the recent crash of the entire cryptocurrency market suggests further downwards movement as the selling continues. However, the lighter shade of the histogram suggests a declining bearish momentum as the bulls fight back to recover to the $20.00 mark.
The EMAs are currently trading low as the Polkadot price analysis observes strong bearish activity over the past few days as the asset crashed from above $25.00 to the recent low of $16.17. While both EMAs move downwards, the 12-EMA has reacted to the recent price movements and moves with a gentler slope. On the other hand, the 26-EMA continues to move downwards at a steady slope.
The RSI is currently training low and hangs in the oversold region issuing a buy signal suggesting that the asset is undervalued at press time. The indicator hovers at 27.32index units and moves upwards with a benign slope suggesting that while the bulls are trying to fight back, strong bearish pressure still weighs on the price action, Furthermore, the indicator’s position suggests little to no room for further downwards movement across short-term charts.
The Bollinger Bands are currently wide and show further divergence as the Polkadot price pushes the indicator’s bottom limit downwards. The expanding bands suggest a period of continued high volatility for the DOT/USDT charts. At press time, the indicator’s bottom limit provides support at the $17.59 mark while the mean line presents resistance at the $22.41 mark, showing room for upwards movement to the mark.
Technical analysis for DOT/USDT
Overall, the 4-hour Polkadot price analysis issues a sell signal with 14 of the 26 major technical indicators showing support to the bears across the timeframe. On the other hand, only six of the indicators side with the bulls, suggesting a strong bullish pressure at the timeframe. Meanwhile, the remaining six indicators sit on the fence and do not show support for either side of the market.
The 24-hour Polkadot price analysis shares this sentiment and issues a sell signal with 16 indicators suggesting a downwards price action against only one of the indicators suggesting an upwards price movement for the asset across the mid-term charts. At the same time, nine indicators remain neutral issuing no signals at press time. The daily analysis shows the strong bearish dominance over the Polkadot price across the mid-term charts.
What to expect from the Polkadot price analysis?
The Polkadot price analysis shows that after crashing from the $25.00 mark, the price observed a freefall to the $16.17 mark where it found strong support that has enabled the price to recover. The price action has recovered above the $18.00 mark but still faces strong bearish resistance below the $20.00 mark.
Currently, traders should expect the Polkadot price analysis to move below the $20.00 mark as the broader market weathers the crypto winter. The mid-term technical analyses also show support to the bears but the short-term technicals suggest that further downwards movement is unlikely. As such, traders should expect sideways movement between $17 and the $20.00 mark.
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