- Polkadot price analysis turns bullish as breakout signals emerge
- Contracting Bollinger Bands and stagnant price action may cause a breakout
- DOT/USD moving in a tight range with sideways trading action
- The upper resistance lies at $30.00, and support lies at $18.8
Polkadot price chart shows that the pair has been slowly building up breakout patterns. The bullish technical indicators are lining up nicely on the hourly charts from a symmetrical triangle to an ascending price channel. Now, contracting Bollinger Bands is further cementing the rise of the DOT/USD pair.
Small but bullish candles are also showing the resilience of the bulls. The pair is moving in extremely tight sideways action with a slightly higher bias. The solid start for this month gave DOT a headstart in comparison to the other cryptocurrencies. Polkadot price analysis shows that the buying pressure may build up as the price peaks near the $28.00 resistance level.
In the past three days alone, the price has climbed 4 percent, including the weekend. Technical indicators such as RSI and MACD are climbing out of the oversold region and slowly emerging in the neutral to the bullish zone.
Polkadot price movement in the last 24 hours: Stagnant with a bullish bias
At the time of writing, the DOT price is hovering near the $21.48 level. The shrinking Bollinger Bands have a range of $28.70 to $18.50, with little headroom for the pair. The Chaikin Money Flow indicator shows that the outflows have dominated the pair compared to inflows in the past three days. Thus, the pair has been steadily residing near the neutral mark, according to Polkadot price analysis.
The $29.1 resistance level rejection shows the bulls will need large volumes to climb the $29 resistance zone. The daily chart is showing promising signs akin to the end of the consolidation period. The 0.5 percent Fibonacci retracement level also resides at $29.2, adding more selling pressure on the pair.
Polkadot price analysis further reflects a chance of rejection at the $29.00 level in the first few days of the current week. A fall below the $18.00 support level will result in forming an evening star pattern that can speel another bear run for Polkadot. A reversal from current price levels will push the pair past the key support pivot at $17.50, further contributing to a massive DOT/USD price decline.
DOT/USD 4-hour chart: Sideways trading may end consolidation
The 50-day exponential moving average is flirting near the price. If the price crosses above the 50-day moving average, it can reclaim higher $32.50 and then at $35.00. Similarly, the 200-day exponential moving average will also pose a serious challenge to the bulls once the pair crosses the $34.00 zone.
A combination of volumes and liquidity can push the pair past the above crucial resistances. As a result, the RSI reading at 45 shows neutrality in the pair. The same can be said of the MACD indicator, which is also ready to undergo a bullish crossover close to the neutral line. However, the daily charts still have a bearish overtone.
The bullish trendline slowly emerging on the charts has faced three consecutive rejections in the past two weeks. A valid bullish signal would come once the pair crosses and closes above the $29.00 resistance zone as per Polkadot price analysis. Another failure for the bullish trendline would mean a sharp decline towards the $19.50 support level.
Polkadot price analysis conclusion: DOT poised for a breakout
The histogram is showing micro bullish signals, which can signal an upcoming breakout. The sideways trend is also evident in the Ichimoku Cloud, where more significant gains are yet to come. Polkadot price analysis shows the price is trading under the Moku Cloud. Investors would want a clear breakout beyond the $29.1 zone to build up long positions.
The upward slope on the ascending price channel may cause a positive crossover soon in the upcoming few trading sessions. The Stochastic RSI indicator is also signaling a change of winds near the $25.00 pivot point. High buying pressure will help the pair touch higher price levels.
The Polkadot price analysis shows a bullish engulfng pattern emerging on the hourly charts. A sharp breakout can change things pretty quickly and take the DOT/USD pair towards $35 provided bulls have the required volumes to carry the torch. On the higher side, $45 will be a huge resistance level posing a tough challenge to an overly bullish DOT trading scenario.