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Polkadot Consolidates Above $6.40 as Bullish Sentiment Slows Down


coinedition.com 26 January 2023 11:00, UTC
Reading time: ~3 m

The cryptocurrency market has seen some sort of bullish action over the last few weeks, with Polkadot following suit. The altcoin has been consolidating above the $6.40 level for the past few days, which is a positive sign.

Polkadot’s price action:Coinmarketcap

Polkadot cryptocurrency is trading at $6.43 after opening the daily trading session at an intra-day high of $6.54 and a low of $6.14, according to CoinMarketCap data. Since then Polkadot’s price has been staggering between the $6.40 and $7.00 level, with the cryptocurrency forming a Doji candlestick pattern on the daily chart.

There is a strong possibility that the bullish sentiment in the market may see DOT break out of its current range and continue its uptrend, as long as it can manage to hold above the key support area at $6.48. However, any breakdown below this level could see Polkadot’s price heading toward the psychological level of $6.00.

It is worth noting that any significant move from either side will be backed by heavy volumes, which could help in determining the direction of Polkadot’s price action in the near future. The trading volume on Polkadot’s 24-hour chart has seen a surge to $306,751,650, which is much higher than the average daily volume of around $300 million.

The buying and selling activity in this range is also something that could help DOT break out of its current consolidation zone and begin an uptrend in the near future.

For now, Polkadot is firmly in the hands of the bulls and a move above $7.00 could open up the door to further gains. However, any bearish action below $6.48 would be an indication that traders are losing interest in Polkadot’s price action and it may retreat back toward its previous support levels.

Polkadot is currently facing stiff resistance at around the $7.0 level, which could prevent further upside in the near term. DOT/USD price analysis on the daily chart indicates the pair formed a Doji candlestick pattern after its last surge, which could suggest a possible reversal in the coming days.

The Doji candlestick pattern forms when the open and close are nearly equal. This suggests that neither the bulls nor the bears have control of the price action and no clear direction has been established yet.

DOT/USD candlesticks:Investing.com

At this point, it is difficult to predict what will happen next, but traders should remain vigilant as Polkadot’s price could continue its uptrend or experience a reversal within the next few days.

The technical analysis on the 4-hour chart is painting a negative sentiment, or a slight bearish crossover on the MACD and RSI, however, this could be due to a temporary correction in the price. It is important to note that the recent bullish momentum has slowed down, which could indicate uncertainty in the near term.

DOT/USD 4-hour chart:TradingView

Overall, Polkadot is consolidating above the $6.40 level and traders should watch this area closely as a breakdown below it would suggest further downside pressure. On the other hand, a breakout above $7.00 would confirm an uptrend, with potential gains extending beyond this level.

For now, the cryptocurrency is taking a breather and traders should be prepared for some volatility in the coming days as the key support level of $6.0 holds.LTC bulls are targeting a move above $7.0 to push prices beyond $8.0 and continue the bullish trend.

On the other hand, if prices break below $6.0, there is a risk of a deeper pullback toward the major support level at the $4.0-$5.0 zone. The current market sentiments are shifting from bullish to neutral as traders wait for the next big catalyst.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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