The price of Polkadot went up by 3.7% over the past 24 hours following the latest increase in the global market cap. As a result, it has shown a sign of strength as the price bounced back with a bullish pattern.
Following a three-week crash from $7.43, Polkadot found base support at $5, and it appears to be footing a retest towards the previous break level of $6. The double-bottom pattern spotted on the 4 hours chart should confirm this bullish signal if it plays out.
As Bitcoin’s price jumped to $17000 overnight, the asset followed the pattern as it recovered to $5.5. The price dropped slightly, and it is now changing hands at $5.39. Last week’s high of $5.56 remains crucial for the bulls to surpass to sustain momentum.
The price could consolidate below this mentioned high if the bulls fail to reclaim it. It is important to note that Polkadot is still following a bearish sentiment on the higher time frame. The descending channel pattern on the daily chart shows that this sentiment has not finished.
Once the price breaks above this channel, we should expect a quick change in trend as the price could favor the bulls. Otherwise, the crypto would continue to lose momentum until it locates solid support for a rebound.
Polkadot Price Analysis (DOTUSDT): Daily Chart
The $5.56 resistance level has suppressed bullish action over the past hours. A push above this resistance level should allow more buy actions to $6, marked orange on the chart. The level to watch above this resistance is $6.66, which lies around the channel’s resistance.
If the $5 level fails to provide support, we should expect a sell action to resume in no time. The closest support level to watch is $4. The $3.89 level is the support to keep in mind if the price continues to plunge.
Key Resistance Levels: $5.56, $6, $6.66
Key Support Levels: $5, $4.51, $3.89
- Spot Price: $5.40
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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Image Source: valedol/123RF // Image Effects by Colorcinch
