Polkadot Price Analysis: DT/USD is expected to break above the intraday highs of $44.3

TL;DR Breakdown

Polkadot price analysis is bearish today.
DOT/USD is currently trading at $43.4
The next few days of trading will determine the short-term direction of Polkadot.

Today’s Polkadot price analysis is bearish, as the $43 resistance has prevented additional increases. As a result, we see a pullback to the $40 support, which is an area of interest for buyers.

Polkadot’s price has fallen over the last 24 hours, in line with our anticipated bearish momentum in yesterday’s analysis. DOT/USD moved back down to $43, where it was met by significant resistance. This prevented further increases and thus triggered a bearish reaction, as DOT/USD fell to $43. The pullback has continued but is currently being rejected at the $43 resistance. If this level is held, we could see further downside pressure in the short term.

If this support area is broken, however, further declines are expected. Below $40, there is significant support at $38 which will be closely monitored by bears. If found, expect a further decline towards the $30 handle, which presents strong support. As the bearish momentum continues, we may likely see this level tested in the short term.

The next few days of trading will determine the short-term direction of Polkadot. Overcoming $43 could lead to more buying pressure, while a break below $40 would likely result in further declines.

DOT/USD 4-hour chart: DOT to test further downside?

On the 4-hour chart, we can observe a lower high being formed as the $43 barrier prevents further appreciation.

DOT/USD 4-hour chart. Source: TradingView

Further declines are likely in the immediate future. Short-term technical indicators on the 4-hour time frame reflect oversold conditions due to strong bearish momentum. If this momentum is sustained, DOT/USD could test further downside levels in the short term.

The price action for Polkadot has been bearish lately, with a reversal of the previous week’s momentum. On the 22nd of October, a new swing high was established at $46.3 after a strong first half of October.

However, the rally did not continue, with DOT/USD establishing a slightly lower high at $46 on Friday. On Wednesday, there was a strong push toward the downside, pushing DOT to establish a new low of $39.

Yesterday, most of the loss was retraced, prompting many investors to suggest that recovery is near. We may expect to see another lower high established at $43 over the weekend, which will result in additional losses during the trading session.

Polkadot Price Analysis: Conclusion 

If buyers can regain control of the market, there is potential for more gains. Resistance lies at $46, which will need strong momentum to overcome. Two significant resistance levels lie above $48 and $50, which could lead to additional gains in the near term if broken.

Disclaimer. The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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