Polkadot Price Analysis: DOT swiftly advances to $21.5, set for a retracement today?

TL;DR Breakdown

• DOT continued advancing on Friday.
• $21.5 mark tested yesterday.
• Polkadot is set for a reversal today.

Polkadot price analysis indicates bearish momentum to follow over the next 24 hours as a new higher high was established around $21.5, and bulls have become exhausted again. Therefore, we expect DOT/USD to retrace and retest the $29 previous resistance as support early next week.

The cryptocurrency market traded with mixed results over the last 24 hours after a rapid advance yesterday. Market leader, Bitcoin, is up by 2.11 percent, while Ethereum is up by 2.13 percent. Dogecoin (DOGE) is among the best performers, with a gain of 17 percent.

Polkadot price movement in the last 24 hours: Polkadot fails to move above $17.5

DOT/USD traded in a range of $20.09 – $21.17, indicating mild volatility over the last 24 hours. Trading volume has decreased by 14.27 percent and totals $1.62 billion, while the total market capitalization trades around $20.2 billion, ranking the cryptocurrency in 9th place overall.

DOT/USD 4-hour chart: DOT set for a retracement?

On the 4-hour chart, we can see the Polkadot price consolidating below the $21.5 mark as the market prepares to retrace some of the gain seen earlier this week.

Overall, the  Polkadot price action has seen a strong increase over the past weeks. Since the last major swing low around $10.5, DOT/USD has gained more than 100 percent until the current local high of $21.5.

No clear signs of trend slowdown have been seen over the past days as higher highs and lows have continuously been set. However, after reaching the $21.5 mark, DOT/USD likely needs to retrace and set another local higher low. 

Support target to look out for is located around the $19 mark as it previously served as a resistance. From there, Polkadot price action should attempt to reach further highs along with the several-week bullish momentum, with the next upside target located around the $24 mark.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis indicates bearish momentum to follow over the next 24 hours as DOT has moved sideways overnight after finding resistance around the $21.5 mark. Therefore, we expect DOT/USD to reverse later today and start retracing towards the $19 previous resistance. 

While waiting for Polkadot to move further, read our articles on investing in PayPal Bitcoin, Bitcoin trusts, as well as Dogecoin as a good investment.

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.

Source: https://www.cryptopolitan.com/polkadot-price-analysis-2021-08-08/