Polkadot Price Analysis: DOT/USD might drop to $20 soon if the bears continue dominating the market

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TL;DR Breakdown

  • Polkadot price analysis is bearish today.
  • DOT/USD is currently trading at $27.08.
  • Bulls likely are exhausted.

Today’s Polkadot price analysis is bearish since we anticipate a reversal following a new high was set below $26.5. DOT/USD may retrace some of its gains and aim to establish another lower low soon.

Either way, the price is elevated above $20.00, but bulls likely are exhausted after 4 consecutive days of parabolic gains. Currently, the market is ranging, and it will continue to do so over the next few days while we look for a breakout either above $26.5 or below $19.5.

Longer-term analysis suggests DOT/USD may see strong support at $20.00, where it has found support three times over the past few months. This is a major psychological level and will likely attract large buyers should it be tested again within the next month.

If price action slips below $19.50, we may see DOT/USD revisit around June’s lows at $17.32 before finding support at $20.00, where it has found support three times over the past few months, likely serves as a psychological support level.

Longer-term analysis suggests DOT/USD may see strong support at $20.00, where it has found support three times over the past few months. This is a major psychological level and will likely attract large buyers should it be tested again within the next month.

DOT/USD 4-hour chart: DOT has peaked below $26.5?

Breakdown levels should be respected at $19.98 and $20.00 but first, notice that the market is ranging for now as it consolidates its recent gains within a descending wedge visible on the 4-Hour chart below.

Polkadot Price Analysis: DOT/USD might drop to $20 soon if the bears continue dominating the market 1
DOT/USD 4-hour chart. Source: TradingView

Bulls are currently applying an ascending pressure level following the 2019 high at $26.73 was set yesterday. However, since eager bulls pushed price action above resistance around $26.5 yesterday, we expect them to become exhausted over the next couple of days which will allow bears to drive the price back down to establish support around our critical support zone between $19.50 – $20.00 where it found significant support in mid-august.

The RSI is heading back towards overbought levels within the 4-Hour chart below, suggesting that this market will continue to consolidate its recent gains before establishing direction either above $26.5 or below $20.00 in the near term.

Another fast surge occurred just under $26.5, and another quick push higher was observed shortly below $26. After that, mild resistance for additional advance may be seen, most likely leading to a retracement over the next days. A higher low might be set next, indicating a shift in trend direction.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis is bearish today as the market has likely finally peaked below $26.5 after setting a clear higher high. From there, we expect DOT/USD to retrace some of the gains and look to set a higher low next.

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.