Polkadot has been one of the most popular privacy cryptocurrencies on the market since its ICO last year, and it’s about to get even more popular. The Polkadot network allows for a number of different blockchains to be linked together, creating a true Web 3.0 that is more secure and scalable than existing blockchains. Polkadot is also a more flexible network than most, allowing developers to build their own subchain with a unique governance model. All these features and more have made Polkadot one of the most popular Ethereum-based tokens since it launched.
Summary of the situation
- Polkadot’s price should move sideways around $36.
- The closest support is at 36.00
- ADA sees resistance at 37.00
The price of Polkadot exceeded $33.00 and strong bullish momentum brought the price to $36.00. The DOT’s stock price has risen more than 24% in the past seven days, indicating strong bullish dominance. However, the strong upward movement is giving way to volatile price movements.
The broad crypto-currency market has been bullish over the past seven days, with most major crypto-currencies posting gains during this time frame. The top performers are Ripple’s XRP and BNB, which won 50.83% and 19.69% respectively. Meanwhile, Bitcoin and Ethereum posted gains of 14.78% and 24.879% respectively.
Technical data for DOT/USDT
Technical indicators for DOT/USDT from Tradingview
As for the technical indicators, the MACD is showing strong bearish momentum, which can be seen by the increase in the size of the dark red histogram. Yesterday at 22:00 the indicator showed a bearish reversal and the bearish pressure has increased since then. As for the EMAs, the 26-EMA is trading above the 12-EMA and continues to diverge while both EMAs are declining.
The RSI is currently in a neutral zone just above the 52.00 level and is not giving any signals. The indicator has been in the neutral zone for the past two weeks. Currently, the RSI has made a small jump into oversold territory, indicating increasing bearish sentiment and a clear sell recommendation.
The Bollinger Bands are currently wide, but will quickly converge in the near future as bears take over the market dynamics. The convergence of the bands indicates a reduction in the volatility of the Polkadot price in the short term. However, if the price consolidates above the centerline of the bars, they will point upwards in the following candles.
Overall, the technical analysis on the 4-hour chart gives a sell signal, with 10 of the 26 major technical indicators pointing to a downward move. On the other hand, only seven indicators are giving buy signals, indicating bullish momentum. Meanwhile, nine indicators continue to lag, supporting neither side of the market.
The 24-hour technical analysis does not share this assessment and gives a buy signal. 10 of the 26 indicators point to an upward move, while only 8 indicators point to a bearish pullback. Meanwhile, eight indicators of
remain neutral and give no signal at the time of writing.
What can we expect from the Polkadot award?
4-hour price chart from Tradingview
Polkadot’s price is consolidating around the $36.00 level, as price action is still near this level. The extremely low trading volume the asset has seen in recent days is the main factor behind this stagnation, showing that most holders are speculating in the market and waiting for the Polka Dot price to take a clear direction.
Short-term technical indicators are bearish, while medium-term technical indicators show bullish sentiment, highlighting the lack of momentum at the moment. Therefore, traders should expect Polkadot to continue its sideways movement around the $36 level.
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