Polkadot Price Analysis: DOT forms consolidation above $17, ready to reverse?

TL;DR Breakdown

• Polkadot price analysis is bullish today.
• DOT/USD rejected downside below $17 yesterday.
• Consolidation base formed overnight. 

Polkadot price analysis is bullish today as we expect the current consolidation to offer a base from which to begin retracing later today. Likely ADA/USD is ready to retrace, with the closest target at $20.

The cryptocurrency market has returned to bullish momentum over the last 24 hours. The market leaders, Bitcoin and Ethereum, have gained 2.48 and 4.51 percent. Meanwhile, Polkadot (DOT) has gained almost 10 percent.

Polkadot price movement in the last 24 hours: Polkadot begins to consolidate around $18

DOT/USD traded in a range of $16.53 – $19.18, indicating substantial volatility over the last 24 hours. Trading volume has declined by 2.24 billion, while the total market cap trades around $18.56 billion, ranking the coin in 10th place overall.

DOT/USD 4-hour chart: DOT looks to move higher

On the 4-hour chart, we can see the Polkadot price starting to advance after establishing strong consolidation base around $18.

Polkadot price action saw a shift in momentum this week again. After previously setting a strong higher low around $23, DOT/USD began to push higher to $28.5 last week.

However, bears took over again on the 17 th of January. Initially, the market declined to $24, with a much more serious selloff seen begin early yesterday. Another drop of over 30 percent followed to the $17 mark.

From there, the Polkadot price action began rejecting further downside. Consolidation was formed around $18 overnight, establishing a base from which to reverse. Therefore, we expect DOT/USD to begin strong retracement over the next 24 hours.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis is bullish today as we have seen rejection for downside at $17. Overnight, consolidation formed a base from which to begin retracement over the next days. 

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