Cryptocurrency

Polkadot Price Analysis: DOT/USD to correct below $19 in preparation of an explosive breakout


TL;DR Breakdown

  • DOT/USD stuck between intense sell signals on daily Polkadot price analysis summary
  • 14 moving averages show sell signal.
  • The $20.46 mark still pose a major hurdle for Polkadot breakout

DOT/USD faces strong sell signals on the 1-day technical analysis summary. 16 out of the 26 major technical indicators point towards the red zone. On the other hand,14 out of the 15 major moving averages suggest a selling sentiment. The oscillators are pointing towards the neutral position with 1 buy signal, 8 neutral, and 2 sell signals. 

Head & Should Polkadot analysis pattern on TradingView 

Important market updates around Polkadot is the increasing use of its blockchain to host parachain auctions. According to the founder of the DOT blockchain, these auctions could be the driving force that will lead to a breakout of Polkadot price. Recently, Composable Finance raised over $100 M worth of DOT contributions after securing the seventh Polkadot Parachain slot. Such updates show how the integration blockchain is positioning itself in the innovation and expansion of decentralized finance. 

Overall across the cryptocurrency market, the bears are dominating. Bitcoin and Ethereum are down by 0.94% and 1.79%. However, a few coins, including Avalanche, Filecoin, ICP, ATOM, and NEO, lead along the green zone. Study the Coin360 crypto heatmap below to get a clearer picture of the market situation.

Source: Coin360 cryptocurrency heatmap

Today’s main hurdle posing a challenge to Polkadot price action is the $20.46 mark. Buyers attempted to break past the $20 mark in the morning but met resistance around the hurdle. Daily traders can watch this point closely and purchase the dip below the resistance; however, they will have to contend with another two price hurdles that have appeared since last week on Polkadot price analysis. These are $21.28 and $22.30. A section of purchase-the-dip investors is looking forward to pulling the price below the $18 mark and therefore short their sell-side liquidity. 

Meanwhile, Cryptopolitan daily crypto analysis experts have found out that DOT/USD has the biggest potential for an explosive near-term breakout during a comparison analysis between Cardano and Polkadot. Therefore, traders are urged to remain vigilant below the $20 mark as an uptrend is looming on the sides. Although the market could correct lower and test the February 14th low of $18.02 due to the effect of market markers, chances of a 10%+ uptrend are high. 

Polkadot price movement over the last 1-day: 

A head and shoulder pattern that started around the close of yesterday’s 24-hour trading session shows a new trendline that could end upwards around the upper limits of the supply zone above $23. If the bulls can break past the 100-day moving average by the end of today, expect Polkadot price action will go above the three major price hurdlers. 

Head & Should Polkadot analysis pattern on TradingView 

Polkadot price development recorded a bearish shift in momentum at the start of February’s second week, even after buyers were able to advocate a strong monthly high at $23.183 on the 8th of this month. The price has not been able to retest that price zone till now when the odds seem much in favor of the DOT/USDT trading pair. Polkadot has shed over 33% between January 17th and February 17th, the press time publication of this Polkadot price analysis.

Polkadot Price Analysis Conclusion

The daily Polkadot price action analysis is bearish due to heightening pressure by market markers to test $17 and $18. The $20 and $22 price resistances prevent the parachain altcoin from breaking out and testing January’s highs between $27 and $28. The price of Polkadot may undergo an uptrend into the weekend and test $22. If this price action fails, the coin is highly likely to retrace below $18.