Polkadot is currently sliding towards the lower levels of the consolidation which may also be considered a good buying range. After a notable start in 2022, the DOT price fell into a deep consolidation which extracted more than 40% from its value. Also, the recent attempt of the asset to lay down a significant upswing was also hindered by the bears who slashed the price towards yearly lows again.
Conversely, the DOT price always attempted to squash the bearish trend and hence consolidated well after each dump. But woefully, the price continued to drain as a result of swinging within a bearish flag. Moreover, the asset formed nearly the same technical formation at present and hence forecasts the possibility of a rejection of a retest. This may eventually lead to a larger plunge.
The DOT price in the short term is swinging within pivotal levels in between the local resistance and support levels. However, to ignite a notable upswing, the price may again slip back to the support zone close to $17 and rebound firmly. Yet the asset is notable bearish in all the time frames but the momentum is bearish but reflecting. And hence a strong breach through the immediate levels around $19.89 may secure an uptrend beyond $23.
Coming to technicals, the MACD is also notable bearish while the RSI is slipping towards the south. And hence it clearly indicates a rebound may be fast approaching as on-balance volume is currently flat. And hence the demand from the buyers and the supply from the sellers may be at equilibrium. Therefore, the Polkadot price may eventually consolidate in a narrow range for some time and pull a significant leg up.
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Source: https://coinpedia.org/price-analysis/this-is-why-you-can-be-bullish-on-polkadot-dot-price/