Polkadot Price Prediction: DOT Eyes Breakout To $5 After Bouncing Off Key Support


Polkadot-Bitcoin-PolkaBTC-Interlay

Polkadot Price Prediction: DOT Eyes Breakout To $5 After Bouncing Off Key Support

  • Polkadot bounces off support at $4.2 as buyers regain control of the price.
  • DOT/USD must clear the resistance at the 50 SMA for gains to $5.00 to materialize.

Polkadot has lost more than 7% of its value in the last 24 hours, making it one of the biggest losers in the market. A recent recovery staged from the crucial support at $3.8 stalled before hitting $5. Retreat ensued with DOT plummeting below the 50 Simple Moving Average in the 4-hour timeframe.

Downward momentum continued before embracing support provided by a confluence formed by the 100 SMA and the 200 SMA around $4.2. At the time of writing, a bullish moment seems to be building upon the buyers’ congestion zone.

DOT/USD 4-hour chart

DOT/USD price chart
DOT/USD price chart by Tradibgview

 

Polkadot is teetering at $4.4 after taking down the hurdle presented by the 50 SMA. In other words, the crypto has a relatively smooth path to achieve gains past $5. The Relative Strength Index validates the bullish outlook as it changes the direction upwards.

DOT/USD hourly chart

DOT/USD price chart
DOT/USD price chart by Tradingview

Looking at the hourly chart, DOT’s bullish outlook could be invalidated if the rejection from the 200 SMA pierces through the ascending trendline. In this case, DOT could revisit the crucial support at $4.2 before staging another recovery. However, the low trading volume suggests that price actions will remain constrained in the near term.

Polkadot Intraday Levels

Spot rate: $4.3

Relative change: -0.01

Percentage change: -0.4

Trend: short term bearish bias

Volatility: Low

Author: John Isige
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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John Isige 748 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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