- Polkadot price analysis is bullish today.
- DOT/USD is currently trading at $18.14.
- Consolidation base formed overnight.
Polkadot price analysis is positive today, as we anticipate a current consolidation to provide a foundation from which to resume retracing later today. The most likely DOT/USD pair will begin retreating, with the closest objective at $20.61. However, we can anticipate a minor drop in value at this point to run deep into the $19 range before the move reverses. Such an event could provide solid long-term entry opportunities while allowing for safer risk management during periods of volatility.
Polkadot price movement in the last 24 hours: Technicals paint bullish picture?
Polkadot‘s technicals are currently bullish. In addition to our short-term forecasts, our longer-term forecasts have also been exhibiting promising signs for bulls within the Polkadot market environment. It is also worth noting that price action continues to trade within a long-term descending channel paired with a descending 100-day simple moving average, which has been evident for over 4 months now.
If the market can press through the 50-day SMA and 100-day SMA, we can expect significant long-term resistance to be located at April’s high point priced at 25.93. The RSI has been able to gain a foothold above the 50 handle, so this is certainly a promising sign for bulls in this market.
Suppose price action manages to break above today’s high. In that case, we expect immediate resistance beyond the current pennant formation to be located at the 38.2% Fibonacci Retracement Level priced at $23.64. We can expect a strong resistance level to exist here due to the 100-day EMAs location.
DOT/USD 4-hour chart: DOT looks set to move higher
The price of Polkadot began to rise on the 4-hour chart after forming a solid consolidation base at $18.
The technical indicators within the market are currently favoring the bulls at this moment in time as the RSI trades well above the 50 handle. If we would like to see a further push higher, we would need to see the RSI push above the previous highs at 50 as marked on the above 4-hour chart of the DOT/USD market.
The MACD is also exhibiting a strong bullish signal as it recently paints a crossover above the signal line, which is evident on the 2-hour chart of the market.
Our short-term outlook for DOT/USD is bullish, and we can anticipate some resistance around $18 to be located in play. If this level is broken, our next stop would likely be at $20, where we expect heavy congestion and resistance to initially challenging any move higher.
The longer-term analysis offers more encouraging signs for Polkadot bulls, with price action trading within a long-term ascending channel, alongside a 4th arc pair produced by Elliot Waves, currently at 23.61 – 3% higher than when they were drawn.
Elliot Wave’s 4th arc pair is created by taking the 1st and 2nd arc and then projecting these out in a parallel line to form the 3rd arc. The 4th arc is then created using this 3rd arc as its base reference point, creating two arcs that are equal distance from the 1st arc. A vertical line is then drawn from the start of the 2nd arc to the end of the 4th arc, which shows Elliott Waves ‘rejection’ area.
Polkadot Price Analysis: Conclusion
The technical indicators are currently favoring the bulls at this moment in time, so we can expect some resistance around $20 to be located in play if this level is broken. Our next stop would likely be at $22, where we expect heavy congestion and resistance to initially challenging any move higher.