- Polkadot price expected to climb to $20.00 resistance level.
- The closest support level lies at $19.00.
- DOT faces resistance in crossing above the $19.50 mark.
Polkadot price has finally broken out of the consolidating channel it has been trading in since mid-January. The price rose to highs of $19.855 before retracing back to the $19.300 mark where it currently trades.
Polkadot price has exhibited a major breakout from its consolidation trend. The sharp bullish momentum has caused the price to spike after breaking above the resistance level carrying it to the $19.855 mark. While the price may have retraced since then, the movie is minor, and it seems likely that DOT will make another attempt at crossing above the level.
The broader cryptocurrency market observes a bullish change across the last 24 hours, with most major cryptocurrencies recording an increase in their prices across the period. These include Bitcoin and Ethereum that record a 6.33 and a 10.60 percent increase, respectively. However, some assets like Cardano (ADA) record a drop in their prices.
Across the technical indicators, the MACD shows increasing bullish momentum as observed in the increasing size of the histograms. The two EMAs are wide and show further divergence as the 12-EMA ascends at a sharp gradient while the 26-EMA follows behind.
The RSI is above 70.00, suggesting an overbought Polkadot price. However, the sell signal is not very strong, and the indicator shows a return to the neutral zone after the recent retracement from the 19.855 mark.
The Bollinger bands were narrow but now show sharp expansion as the price breaks above the $17.50 resistance level. Currently, the price is trading above the upper limit of the indicator suggesting further expansion for the indicator. Currently, the Bollinger bands and the RSI pair issue a sell signal, but the signal is not very strong.
Overall, the four-hour technical analysis issues a strong buy signal, with 17 of the 26 major technical indicators supporting an upwards price movement. On the other hand, only one indicator issues a sell signal while the remaining eight indicators remain neutral, issuing no signals supporting either side.
The 24-hour technical analysis shares this sentiment as the analysis shows 14 indicators supporting a bullish price action against only one indicator suggesting a retracement below the $19.00 mark. Meanwhile, eight indicators do not issue any signals, with the analysis issuing a buy signal overall.
What to expect from Polkadot price?
Traders should expect Polkadot to consolidate above the $18.50 mark as DOT observes a healthy trend correction. However, the positive indicators and the increasing trade volume suggest a swift recovery before the price continues its bull rally towards the $20.00 mark.
Conversely, if Polkadot price falls below the $18.50 mark, DOT will fall to the $18.00 level with a potential drop to the $17.50 mark. However, that is unlikely to happen given the positive technical analyses on both short and mid-term.