Polkadot Price Analysis: DOT fails to break $24, begins to consolidate

TL;DR Breakdown

• Polkadot price analysis is bullish today.
• DOT/USD continues consolidating overnight.
• Resistance at $26 tested again.

Polkadot price analysis is bullish today as we expect more upside to follow after the $24.5 mark reversed the previous decline. Likely, DOT/USD will move to break above $26 next and retrace the loss seen earlier this week.

The cryptocurrency market has seen bullish momentum slowly return over the last 24 hours. The market leader, Bitcoin, has lost 0.38 percent, while Ethereum has gained 0.11 percent. Polkadot (DOT) trades in the red, with a loss of almost 1 percent.

Polkadot price movement in the last 24 hours: Polkadot consolidates in an increasingly tighter range

DOT/USD traded in a range of $24.74 – $25.93, indicating mild volatility over the last 24 hours. Trading volume has declined by 11.72 percent, totaling $1.922 billion. Meanwhile, the total market cap trades around $25 billion, ranking the coin in 10th place overall.

DOT/USD 4-hour chart: DOT ready to reverse? 

On the 4-hour chart, we can see the Polkadot price likely forming a base from which to reverse later in the weekend.

Polkadot price action saw another strong decline this week. After previously retracing to $30.5, where consolidation was formed, a sharp drop lower followed on the 4th of January.

DOT/USD dropped 20 percent until the $25 mark, with further downside reached a day later above $24. Therefore, we assume bears are now exhausted, and DOT could see a reversal over the next days.

The current sideways movement likely has prepared a strong base from which to reverse. Once the Polkadot price action can break above $26 local resistance, we expect to see a lot more upside tested.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis is bullish today as we expect the current consolidation to end with a spike higher. Likely bears are now exhausted, and DOT/USD is ready to retrace the loss seen earlier this week.

While waiting for Polkadot to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.