Polkadot price analysis: DOT rejected at $6.00, where is the price headed next?

By November 20, 2022Polkadot
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TL;DR Breakdown

  • Polkadot price analysis suggests downwards movement to $5.40

  • The closest support level lies at $5.60

  • DOT faces resistance at the $6.00 mark

The Polkadot price analysis shows that the DOT price action was rejected at the $6.00 level and has moved down toward the $5.60 support level.

The broader cryptocurrency market observed a negative market sentiment over the last 24 hours as most major cryptocurrencies recorded negative price movements. Major players include NEAR and DOT, recording a 0.83, and a 0.61 percent decline, respectively.

Technical indicators for DOT/USDT by Tradingview

The MACD is currently bullish, as expressed in the green color of the histogram. However, the indicator shows low bullish momentum as expressed in the low height of the histogram. Furthermore, the lighter shade of the histogram suggests a declining bullish momentum and indicates that a bearish crossover is imminent.

The EMAs are currently trading close to the mean position as net price movement over the last ten days remains low. Moreover, as the two EMAs continue to move horizontally, the momentum would not increase on either side. On the other hand, the horizontal movement of both the 12 and the 26-EMA suggests a lack of trading activity from either side of the market. 

The RSI has been trading within the neutral region for the last seven days since dipping into the oversold region on 10 November. Currently, the indicator is trading near the mean position at the 50.00 index unit level and hovers at 41.91. At press time, the indicator issues no signals while the declining slope shows low bearish pressure. 

The Bollinger Bands are currently narrow as the price action observes low volatility around the $5.75 mark. At press time, the indicator’s bottom line provides support at $5.51 while the upper limit presents a resistance level at $6.00

Technical analyses for DOT/USDT 

Overall, the 4-hour Polkadot price analysis issues a sell signal, with 15 of the 26 major technical indicators supporting the bears. On the other hand, one of the indicators supports the bulls showing a low bullish presence in recent hours. At the same time, ten indicators sit on the fence and support neither side of the market. 

The 24-hour Polkadot price analysis shares this sentiment and also issues a sell signal with 15 indicators suggesting a downward movement against two indicators suggesting an upwards movement. The analysis shows bearish dominance across the mid-term charts while little to no significant buying pressure for the asset across the same timeframe. Meanwhile, nine indicators remain neutral and do not issue any signals at press time.

What to expect from Polkadot price analysis?

The Polkadot price analysis shows that after observing a sharp price drop to the $5.40 mark, DOT was able to defend the support level and the price recovered to the $6.00 mark. However, the bulls were rejected at the level and have fallen back to the $5.66 level.

Traders should expect DOT to move down toward the support level at the $5.40 mark. The suggestion is reinforced by bearish mid-term technicals that are becoming more bearish across the short term. However, if the bulls are able to defend the $5.60 mark, the price should instead climb toward the $6.00 level. 

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