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Polkadot price analysis: Bullish momentum continues as bulls target $5.0 | Cryptopolitan

Polkadot price analysis indicates DOT prices are continuing to trade in a bullish trend after a mini rally witnessed in the broader market sentiment. The overall trend for Polkadot prices appears to be strong as the altcoin has gained by 3.6 percent, trading at $4.49 at the time of writing. To increase the chances of continuation of the rally, it is key for the buyers to break, sustain and propel the price above this key resistance level. A potential upside is If this happens, then the bulls could take DOT prices to the next resistance level of $5.5.

Bitcoin and Ethereum are extending gains for the second day of the new year while the top ten altcoins register minor gains. Currently, DOT is trading above the 100-day and 50-day simple moving average at the 4.35 level and is expecting more and more immediate upward pressure. If the bulls successfully push the price above the current resistance level at $5.0, the next immediate target is $6.0.

Polkadot price analysis on the daily chart: The bulls lack enough momentum to break above the 20-day EMA

Polkadot price analysis on a daily chart shows Polkadot opened today’s trading session at an intraday high of $4.52 and since then the bullish momentum has slowed down and it has failed to break above the 20-day exponential moving average (EMA). Despite the failure of the bulls to break above the 20-day EMA, support for Polkadot appears to be strong with strong trading volumes and consolidation near its current price level.

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DOT/USD 1-day price chart. Source: TradingView

The support level lies at $4.33, and a sustained break below this level could see the price of Polkadot fall back to its lowest level in the past three weeks at $4.21. On the other hand, if the bulls can find enough momentum to break above the 20-day EMA and also clear the $4.80 resistance level, this could push Polkadot’s price up towards $5.0, which is the key resistance level that it has been stumbling at for the past few weeks.

The technical indicators are showing a slowing of momentum, with the Relative Strength Index (RSI) hovering near the midpoint, which indicates a balance between buying and selling pressure. The ATR (Average True Range) also appears to have settled into its current range, indicating a period of low volatility.

The Fib retracement levels also indicate that a break above the $4.80 resistance level could lead to a rally up toward the 38.2% retracement level, which is currently near the $5.25 mark. As such, bulls need to be careful, as any further weakness could lead to a sharp drop toward the 50-day EMA, which currently stands at $4.60.

Polkadot price analysis on a 4-hour chart: DOT trades within a range of $4.32 to $4.52

Polkadot price analysis on a 4-hour timeframe indicates DOT is stuck in a tight range and has formed a horizontal channel, with a strong resistance of $4.52 and support of $4.32.The candle close on 4-hour charts was also seen near the resistance level, making it hard for bulls to break out of the range. The trading volume is relatively high, indicating that a price break is highly likely in either direction as the momentum has started to slow. The chart pattern is suggesting that bears are likely to dominate the market if the price fails to break the strong resistance level of $4.52.

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DOT/USD 4-hour price chart. Source: TradingView

The key resistance of $5 is likely to be tested if the bulls are able to break out of the range and make a decisive move above $4.52. Meanwhile, the technical indicators are showing a firm bullish sentiment as the Relative Strength Index (RSI) is trending near the overbought level and the Moving Average Convergence Divergence (MACD) line is comfortably trading above its signal line.

The Ichimoku Cloud is also indicating that bulls have the upper hand in the short-term, as the price is trading above both the tenkan-sen and kijun-sen lines with a bullish bias.

Polkadot price analysis conclusion

Polkadot price analysis for today shows that Polkadot is set to maintain its bullish momentum and could possibly test the key resistance of $5 if the bulls can break out of the range and make a decisive move above $4.52 This potential breakout could be further bolstered by the technical indicators that are hinting at a strong bullish sentiment.

Read More: Polkadot price analysis: Bullish momentum continues as bulls target $5.0 | Cryptopolitan

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