Polkadot Price Analysis: DOT trades below $21.5 resistance, another retracement today?

TL;DR Breakdown

• DOT moved sideways yesterday.
• Spike higher was seen overnight.
• DOT/USD to yet ready to break higher.

Polkadot price analysis is bearish for today as the $21.5 resistance prevents further upside once again. Therefore, we expect DOT/USD to retrace once more and retest the $19 support next.

The cryptocurrency market trades in the green over the last 24 hours. Bitcoin has seen a slight gain of 0.24 percent, while Ethereum is up by 2 percent. Meanwhile, Cardano is up by almost 20 percent and is among the best performers.

Polkadot price movement in the last 24 hours: Polkadot tests $21.5 resistance again

DOT/USD traded in a range of $20.12 – $21.68, indicating mild volatility over the last 24 hours. Trading volume has increased by 18.5 percent and totals $1.61 billion. The total market capitalization trades around $21.1 billion, ranking cryptocurrency in 9th place overall.

DOT/USD 4-hour chart: DOT set to reverse again?

On the 4-hour chart, we can see the Polkadot price action testing the $21.5 resistance again, indicating another retracement to be seen later today.

Polkadot price action has traded with a very strong bullish momentum over the last weeks. After establishing support around $10.5, DOT/USD reversed and started to rally towards the previous swing high.

On the 1st of August, DOT broke past the $17.5 resistance and moved substantially higher, indicating a shift in the medium-term trend direction. Earlier this month, DOT/USD retraced to retest the previous swing high resistance as a support and saw further upside from there.

However, as of now, the Polkadot price has extended itself too far without a significant retracement. The current failure to move above the $21.5 mark could be the first sign of a much serious reversal later this week. Therefore, we expect bearish momentum later this week, with the $19 previous support likely retested.

Polkadot Price Analysis: Conclusion 

Polkadot price analysis indicates bearish momentum to follow as the $21.5 resistance could not be breached overnight after several attempts to move higher over the last 24 hours. Therefore, we expect DOT/USD to reverse once more and move towards another retest of the $19 support. 

While waiting for Litecoin to move further, read our articles on Bitcoin Futures, Physical Bitcoin, as well as Proof of Stake vs Proof of Work.

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Source: https://www.cryptopolitan.com/polkadot-price-analysis-2021-08-11/