Polkadot price prediction shows 5% dip, but it’s not all bad news!

  • Polkadot could see a slightly deeper price drop before recovery.
  • The higher timeframe momentum was shifting bearishly as prices retested a support level.

As a seasoned researcher with over two decades of experience in the crypto market, I’ve seen more than a few bull runs and bear markets. Looking at Polkadot [DOT], it seems we might be in for a slight dip before recovery. The higher timeframe momentum is shifting bearishly as prices retest a support level that has held strong for the past two weeks.


As an analyst, I observed that Polkadot [DOT] successfully broke out in a bullish market structure on Saturday, 24th August. However, this positive momentum has since reversed, with the price returning to its previous levels. Notably, it is currently hovering slightly above the $4.22 support level, a point it had previously tested two weeks prior.

In simpler terms, a recent analysis indicates that the area around $4 could serve as a mental barrier for Polkadot’s price. Will the Polkadot price drop down to $4 before it recovers, or will there be an uptick at around $4.22 instead? This is the question traders are considering based on this report.

Should traders be bearish or bullish?

Polkadot price prediction shows 5% dip, but it’s not all bad news!

On a day-to-day scale, the market trend indicated a bullish stance. The $4.22 mark has previously acted as a support level over the last fortnight and is expected to do so again. This repetition might push DOT prices up towards the current local peaks at $5. Such an upward movement could potentially initiate a price range.

On the 12-hour chart, the technical indicators hinted at a potential downtrend. Specifically, the Moving Average Convergence Divergence (MACD) crossed over to suggest a bearish shift in momentum, and the On Balance Volume (OBV) showed a rejection at the highs it reached earlier this month, which could indicate a reversal or weakening of the uptrend.

Consequently, the OBV didn’t descend extremely far, implying that traders might not foresee a shift towards $3.6 in the near future.

A revisit to this level might be required before recovery

Polkadot price prediction shows 5% dip, but it’s not all bad news!

According to the recent price analysis by AMBCrypto, it appears that the DOT price may temporarily drop below the current level of $4.22, indicating a potential short-term low. However, this breakdown might not be sustained for long.

Read Polkadot’s [DOT] Price Prediction 2024-25

At $4.11, there was a tightly packed group of potential selling points, which might draw prices towards them prior to a price change in the opposite direction.

Consequently, swing traders might aim to purchase when the price ranges between $4.05 and $4.11, with an objective of triggering a turnaround towards $5.17, which is the next significant pool of market activity ahead.

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2024-08-29 19:03