September 26, 2022

Polkadot Price Forecast: DOT healing becomes an uphill struggle while overhead pressure installs

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Polkadot Price Analysis

  • Polkadot strikes a snag under $35, abandoning the growth to highs past $40. DOT seeks assistance at the 50 SMA on the 4-hour chart while

attempting to avert decreases under$ 30. Polkadot had staged an outstanding recovery on Monday, extending the bullish leg from the just recently formed assistance at $27. The token hit highs above $30 and pushed for gains beyond $35. Nevertheless, bulls lost steam within a whisker of a confluence resistance produced by the 100 Simple Moving Average (SMA) and the 200 SMA on the 4-hour chart.

The objective to accomplish a new record high beyond $40 seems to be a pipedream at the time of composing due to increased resistance below the confluence level. DOT seeks greater support at the 50 Simple Moving Average (SMA). If this immediate anchor fails to hold, we can anticipate DOT to tumble more and possibly retest $30.

The Moving Average Convergence Divergence (MACD) indication had turned massively bullish from last week. However, the indication’s upward momentum has actually dramatically lowered. At the time of composing, the MACD line prints a horizontal pattern, indicating that the tiniest resistance path is sideways.

DOT/USD 4-hour chart

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DOT/USD price chart
DOT/USD cost chart by Tradingview On the other hand, traders need to watch for the MACD’s return into the favorable region. Besides, if the MACD line (blue) crosses under the signal line, massive sell orders are likely set off. Another dip listed below $30 might not stop at $27 but could extend the bearish leg underneath $20.

On the upside, holding the support at the 50 SMA on the 4-hour chart will guarantee market stability. Bulls will then have the time to concentrate on reconstructing the uptrend towards $40. Another bullish signal would be settling above the confluence resistance at $35.

Polkadot intraday levels

Spot rate: $33.6

Pattern: Bearish

Volatility: Low

Support: 50 SMA on the 4-hour chart, $30 and $27

Resistance: $35 and $40

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