Polkadot price analysis: DOT retraces below $6.50, can the bulls defend $6.40?

TL;DR Breakdown

• Polkadot price analysis suggests sideways movement between $6.40 and $6.60
• The closest support level lies at 6.45
• DOT faces resistance at the $6.50 mark

The Polkadot price analysis shows that the price action finds resistance at the $290.00 mark and has fallen back below the $6.50 mark as the bulls recuperate. 

The broader cryptocurrency market observed a positive market sentiment over the last 24 hours as most major cryptocurrencies recorded positive price movements. Major players include DOGE and UNI, recording a 16.55 and a 5.58 percent incline, respectively.

Polkadot price analysis: DOT returns to $6.45

The MACD is currently bullish, as expressed in the green color of the histogram. The indicator was showing low bullish momentum until the price suddenly observed a spike two days ago. Now, the indicator shows strong bullish momentum, but the light shade of the histogram suggests a decreasing buying activity as the price faces resistance at the $6.60 mark.  

The EMAs are currently trading high above the mean position as net price movement over the last ten days remains bullish. However, as the two EMAs’ slope declines, the bullish activity is expected to decrease, with the 12-EMA converging with the 26-EMA. Currently, the EMAs suggest decreasing buying pressure as the price falls back to the $6.40 mark. 

The RSI was trading in the oversold region a few days ago as the index dropped below the 30.00 index unit level. Since then, the indicator moved back up towards the overbought region and climbed above the 70.00 index unit level issuing a sell signal. Currently, the indicator has moved back to the neutral region with a horizontal slope suggesting low bullish activity. 

The Bollinger Bands were diverging recently as the price action observed sharp bullish movement. However, as the price stabilized around the $6.50 mark, the Bollinger bands started converging around the level. The indicator’s mean line provides support at $6.30, while the upper limit provides support at $6.82. 

Technical analyses for DOT/USDT 

Overall, the 4-hour Polkadot price analysis issues a buy signal, with 14 of the 26 major technical indicators supporting the bulls. On the other hand, only two of the indicators support the bears showing a low bearish 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 does not share this sentiment and instead issues a sell signal with 10 indicators suggesting a downward movement against eight indicators suggesting an upwards movement. The analysis shows slight bearish dominance across the mid-term charts while showing significant buying pressure for the asset across the same timeframe. Meanwhile, ten 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 hike to the $6.60 mark, DOT was unable to continue with the momentum, and the price has retraced to the $6.450 mark. Currently, the bulls are trying to hold the $6.45 support level while the bears are trying to erase the past 48 hours’ gains.

Traders should expect DOT to move sideways at the level with the bulls defending the $6.40 support level across the short term. The suggestion is reinforced by the mid-term technical analyses that are highly bullish. Over the next few days, DOT can be expected to trade between $6.4 and the $6.6 mark, with a potential breakout to $6.70.