DOT Price Strives To Rise Above $5.60

DOT price has been stuck in a consolidation zone ranging between $5 and $5.60 since the start of July 2023, struggling to shatter the $5.60. The cryptocurrency price has attempted thrice to close above $5.60 but faced strong rejections.

The bullish rally for Polkadot price commenced during the mid-June 2023 when the price formed support at $4.35 but the move was halted due to the presence of bears above the $5.50 level.

If a candle can close below the $5 level, there is a possibility that the dot price might head toward the next support level of $4.50 causing a drop of roughly 10% in the price.

There must be bearish momentum to push the DOT price to $5 as it is a strong support level that has held the price previously.

Currently, the Polkadot price is hovering near $5 and has not been successful in forming support. If the price can form strong support, it might start its journey to retest the $5.60 resistance level. For the price to retest its annual high, it needs to rise above the $7 level.

The market capitalization has also decreased by 0.02%. The 24-hour trading volume is down by 20.21%. The price is down by 90.57% from the all-time high of $55 and is up 92.57% from the all-time low of $2.69.

Will Dot Price Break the $5 Support Level?

The cryptocurrency price trades below 20,50,100 and 200-day EMAs indicating bearish momentum in the price. The Chaikin money flow (CMF) score is -0.04 suggesting slight weakness in the market. CMF is sloping upwards implying that bulls have also started to enter the market to protect the support level of $5.

The relative strength index is trading at 48.29 indicating that the price is in neutral territory facing the same pressure from bulls and bears. The 20-day SMA of Bollinger bands was previously acting as a support. Currently, the price has dipped below it and is headed toward the lower band which resides near $5.

The bands have contracted implying low volatility in the market. The long/short ratio is 0.88 with 46.88% longs and 53.12% shorts indicating that there is increased participation of bears in the last 24 hours.

Conclusion

The market structure and price action of Polkadot are in a decisive phase as the price is stuck in a wide-range consolidation zone but the overall trend is bearish. Technical parameters are also favoring the bearish trend as the price is currently headed toward $5. The break of the $5 level can push the price towards $4.50.

Technical Levels

Major support: $5 and $4.50

Major resistance: $5.60 and $5.87

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.