Polkadot price analysis shows that the digital asset is currently in a consolidation phase after a sharp sell-off from highs of $9.68.The digital asset fell to lows of $8.9 before finding support and bouncing off slightly. The market is currently trading at $9.1 and is up by 0.88 percent in the last 24 hours according to data from CoinMarket.
The trading volume in the last 24 hours is $$341,457,198.59 while the market capitalization is $9,103,689,641.69.DOT is currently ranked in position 11 as it dominates 0.74 percent of the cryptocurrency market.
Polkadot price action on a daily chart: Bulls stumble to push prices higher
Polkadot price analysis on a daily timeframe indicates the bulls have been trying to push prices higher but have failed to do so convincingly. The Relative Strength Index shows that the bulls are losing momentum and might take a back seat in the near term as the digital asset consolidates. The 50-day Simple Moving Average is also sloping horizontally indicating a period of consolidation in the market.
The MACD is currently trading in the red with the signal line and the histogram also following suit. This is an indication that the sellers might take control of the market in the near term as the bulls lose steam. The market volatility is low as indicated by the Bollinger bands which are contracting.
The 200-day Simple Moving Average is sloping horizontally indicating a period of consolidation for DOT prices in the long term. On the downside, support is present at $8.9 and this is where the bulls might step in to prevent prices from falling further. The digital asset is slowly climbing higher as it tests the $10 resistance level. A breakout above this level could see DOT prices rally to highs of $12 in the near term. On the downside, a move below $8.9 could see DOT prices retest lows of $8.6 in the near term.
Polkadot price analysis on a 4-hour price chart: Bulls defend $9 support
On the 4-hour timeframe, DOT prices are trading in a descending channel formation. The market is currently trading at the lower end of the channel and is testing the $9 support level. The Relative Strength Index is currently trading at 37 indicating that the digital asset is oversold and a relief rally might be on the cards. The MACD is currently trading in the red with the signal line and the histogram also following suit. This is an indication that the sellers are in control of the market and a move to the downside might be on the cards.
The 200-day Simple Moving Average is seen to be sliding lower indicating that the bears are in control of the market in the long term. The 50-day Simple Moving Average is currently trading horizontally indicating that the market is in a period of consolidation. The market is likely to gain some volatility in the near term as it tests the $9 support level. The Bollinger bands are currently wide and this is an indication of high volatility in the market.
Polkadot price analysis conclusion
Polkadot price analysis concludes that the digital asset is likely to consolidate between the $9 and $10 levels in the near term. The bulls are seen to be defending the $9 support level and a move below this could see DOT prices retest lows of $8.6. However, the bears are struggling to push prices lower and a move above $10 could see DOT prices rally to highs of $12 in the near term.
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Source: https://www.cryptopolitan.com/polkadot-price-analysis-2022-06-09/