Polkadot Price Analysis: DOT retraces to retest $17 support

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TL;DR Breakdown

  • DOT moved sideways yesterday.
  • Retracement was seen overnight.
  • Support around $17 likely to reverse DOT/USD

Polkadot price analysis is bullish for today as the $17 previous resistance level was retested as support overnight. Therefore, we expect DOT/USD to rally from the support over the next 24 hours and test the previous swing high next.

Polkadot Price Analysis: DOT retraces to retest $17 support 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market has retraced overnight, resulting in a bearish price action movement over the last 24 hours. Bitcoin has lost 2.63 percent, while Ethereum 3.25 percent. Polkadot (DOT) is among the worst performers, with a loss of around 5.83 percent.

Polkadot price movement in the last 24 hours: Polkadot retraces to $17 support

DOT/USD traded in a range of $17.01 – $18.71, indicating strong volatility over the last 24 hours. Trading volume has decreased by 41.64 percent and totals $1.43 billion, while the total market capitalization has declined to $16.93 billion.

DOT/USD 4-hour chart: DOT ready for further highs?

On the 4-hour chart, we can see the Polkadot price retracing to retest the $17 previous resistance as support in preparation for another attempt to move higher.

Polkadot Price Analysis: DOT retraces to retest $17 support
DOT/USD 4-hour chart. Source: TradingView

The Polkadot price has seen an almost 90 percent increase over the past weeks after the $10.5 support prevented further downside on the 20th of July. Additionally, DOT/USD broke past the $17.5 resistance, indicating that the several-month bearish price action structure has not become more bullish.

Over the weekend, DOT rallied further until rejection for further upside was found around the $20 mark. From there, DOT/USD started to retrace yesterday, with the $17 previous resistance tested as support earlier today.

Overall, this price action development indicates that we could see reversal over the next 24 hours unless the $17 mark is broken. Alternatively, if DOT/USD breaks below $17, we could see a much deeper retracement to the $15 mark later this week.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis is bullish for the next 24 hours as a higher low currently gets established above the $17 previous resistance, which now acts as a support. Following this price movement, DOT/USD is likely ready for another push higher to the $19 resistance, from which further higher highs could be reached later this week.

While waiting for Polkadot to decline, read our articles on Satoshi Nakamoto, DeFi advantages, as well as Bitcoin fees.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.