The Polkadot price analysis reveals that the price has spiked higher today. Bulls have made a strong comeback today; even the trend remained bullish yesterday as well, but a few hours of bearish activity changed the trend as a strong correction took place. The coin got support at $7.27, and the price has reached $7.53 today. DOT is moving upwards towards the next resistance present at the $7.80 level.
DOT/USD 1-day price chart: Bulls show an immediate reaction after a strong correction
After yesterday’s rapid sell-off, the 1-day price chart for Polkadot price analysis shows the DOT/USD has recovered back to $7.53 at the time of writing, as the coin continues to get positive market sentiment. DOT/USD still reports a minimal loss of 0.12 percent for the last 24 hours due to the correction observed yesterday. However, the short-term trending line is going in an upwards direction, and it has gained a value of 3.08 percent over the past week. The trading volume has increased by 22.26 percent, providing market dominance of 0.85 percent to DOT. The price has recovered today, but the market cap has still decreased by 2.10 percent.
DOT/USD 1-day price chart. Source: TradingView
The volatility for DOT/USD pair decreases as the price moves toward the upper side of the volatility indicator; the Bollinger bands mean average is forming at $7.32, whereas the upper limit of the Bollinger band at $7.88, which suggests resistance for DOT/USD, and the lower limit is at $6.77 suggests support for DOT price function.
The price is trading above the moving average (MA), which is present at the $7.26 level. The relative strength index (RSI) also shows improvement in its levels continuously. The RSI curve has turned upwards again and is trading at index 49 near the center of the neutral zone, indicating buying activity in the market.
Polkadot price analysis: Recent developments and further technical indications
The 4-hour price chart for Polkadot price analysis reveals the price is recovering at a good pace as the bulls have gained good momentum today as the price is improving. The support indicated by the Bollinger bands lower limit at $7.10 has provided a cushion to the price function. As can be seen for the past few hours, the bullish momentum was intensifying, but now the pressure seems to be building up, so chances for further recovery are decreasing.
DOT/USD 4-hours price chart. Source: TradingView
The volatility has been on the increase as the Bollinger bands show expansion, and the price is trading above the mean average line of the Bollinger bands and the moving average. The RSI shows huge improvement as it has recovered well after sinking; now, the upwards trending line of RSI on the 4-hour chart is flattening out at index 59, which indicates a rise in bearish pressure.
Polkadot price analysis conclusion
The Polkadot price analysis suggests the market sentiment is very positive today, and chances are there for a further upwards price movement. But traders should expect the DOT to correct at any time today before exposing further highs. We expect the cryptocurrency to maintain above $7.30 in the coming hours.
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