Polkadot Price Prediction: DOT Bulls Gasp For Air After a Gruesome Drop to $17
- Polkadot reflex recovery from the mid-week breakdown closes the gap to $30.
- DOT bulls come up for air with a bang as attention shifts back to $40.
- The SuperTrend indicator has a bearish signal suggesting that bearish pressure should not be ignored.
The freefall across the cryptocurrency market on Wednesday did not spare Polkadot. A gradual bloodbath from the weekend session gained momentum, where Bitcoin dived to $42,000. Stability returned to the market briefly on Monday and Tuesday but was ousted as BTC stretched the losses to $35,000.
DOT got caught up in the dramatic selloff; thus, tentative support areas at $34, $28, and $20 did little to stop the declines. Bears extended their legs to $17 before the bulls got a chance to regain control.
Meanwhile, the ongoing recovery has made it above $28, allowing buyers to shift the focus to $34 and $40 levels, respectively. A break above $30 is crucial to sustaining the uptrend.
Polkadot closes the gap to $30 while $40 beckons
According to the forming bullish outlook on the four-hour chart, the least resistance path is north. Indicators such as the Relative Strength Index (RSI) have flipped bullish. If the RSI keeps moving toward the midline, buyers will gain traction while pushing for gains past $30.
It is essential to realize that the Moving Average Convergence Divergence (MACD) indicator has slowed down the downward drift and may turn bullish in the near term. Traders should be on the lookout for the MACD line (blue) cross above the signal line to ascertain the possibility of the uptrend proceeding beyond $30.
DOT/USD four-hour chart
The TD Sequential indicator has flashed a buy signal on the four-hour chart. This call to buy manifested in a red nine candlestick and insinuated that bears were losing momentum. The buy signal encourages investors to take long positions, especially after a significant dip. Note that the call has already been validated, implying that the slightest resistance path is upward.
DOT/USD four-hour chart
Looking at the other side of the picture
On the other hand, the SuperTrend indicator on the same four-hour chart still has a bearish impulse. Like a moving average, this indicator overlays the price and foresees the direction of the trend. A call to sell occurs when the SuperTrend indicator turns red and flips above the price. Therefore, traders must be cautious to avoid being caught in bull traps.