Signal price

Polkadot Price Analysis: DOT Recovers $6.50, Eyes $6.80 Next

TL distribution; DR

  • Polkadot Price Analysis Suggests Upward Move to $6.80
  • The closest support level is at $6.20
  • DOT faces resistance at $6.50

Polkadot price analysis shows that the price has found support at the $6.20 mark, allowing the bulls to recover at the $6.50 mark. However, the bearish momentum is not yet dispersed and a rejection at the level may lead to a crash at the $6.00 mark.

The broader cryptocurrency market has seen bullish market sentiment over the past 24 hours, with most major cryptocurrencies seeing positive price movements. Major players include UNI and BNB, registering a slope of 5.32 and 5.07%.

Polkadot Price Analysis: DOT Returns to $6.50

Technical Indicators for DOT/USDT by Tradingview

The MACD is currently bearish, as expressed by the red color of the histogram. However, the indicator shows weak bearish momentum, as observed in the shallow depth of the histogram. Additionally, the lighter hue of the histogram suggests that the downside pressure is easing since yesterday as the price rallies back to the $6.50 mark.

The EMAs are currently trading near the middle position as the net price movement over the past ten days remains small. Additionally, as the short-term charts see low volatility, both EMAs move horizontally, suggesting a lack of momentum on either side. Additionally, as the two EMAs diverge further, the bearish momentum will only increase in the near term.

The RSI has been trading in the neutral zone for the past ten days since the index fell into the oversold region on September 19. Currently, the indicator is hovering at the 51.39 index unit level and moving horizontally, suggesting weak net term chart activity. While the indicator is neutral, the middle position gives way to volatile movement in either direction.

The Bollinger Bands are narrow at press time as the Polkadot price has seen low volatility over the past few days and is now converging as the price returns to the indicator’s middle line. Currently, the lower line of the indicator is providing support at $6.16, while the upper boundary is showing resistance at $6.76.

Technical Analysis for DOT/USDT

Overall, the 4-hour Polkadot price analysis is giving a buy signal, with 10 of the 26 major technical indicators supporting the bulls. On the other hand, seven of the indicators support the bears showing little to no bearish presence in recent hours. At the same time, nine indicators sit on the fence and do not support either side of the market.

The 24-hour Polkadot price analysis does not share this sentiment and instead issues a sell signal with 12 indicators suggesting downward movement against only four indicators suggesting upward movement. The analysis shows the bearish dominance on the medium-term charts while showing low buying pressure for the asset over the same timeframe. Meanwhile, ten indicators remain neutral and give no signal at press time.

What to expect from Polkadot price analysis?

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4 Hours Price Chart by Tradingview

Polkadot price analysis shows that after the rejection at $6.80, the price crashed to $6.20, where the bulls found short-term support. Currently, the price is heading towards the resistance level of $6.50 as the bulls struggle to take control of the market.

Traders should expect DOT to move from the $6,500 mark as the bulls gain dominance on the short-term charts. The suggestion is reinforced by the short-term technical indicators and the 4-hour chart analysis. As such, traders can expect price to retry the $6.80 resistance level in an attempt to reclaim the $7.00 mark. However, a rejection at the $6.50 mark may lead to a crash at the $6.00 mark due to strong downside pressure.