Over the past week, the bullish sentiment of the collective crypto market has slowed down. Bears had made their presence felt and Polkadot continued to be aware of this impact. After briefly registering a local top at $6.45 on 24th November, DOT has managed to cross the $6 mark again. Its recent rally pushed the valuation above $5.5 but another pullback brought it down to $5.12 at press time.
Polkadot 12-hour chart
At the moment, the long-term chart is establishing a few positive traits but the overall trend eyeing for a bearish correction. As observed, DOT is currently undergoing oscillation within an ascending broadening channel which carries bearish implications. While the asset is currently between resistance $5.26 and $4.76, there is a possibility that the value may drop down to $4.25 before the end of the year.
A positive factor at the moment is DOT’s position above the 50-Moving Average, as the MA is forming the underlying support. The trading volume is not significant over the past few days but it isn’t non-existent either.
Market Reasoning
A stronger inclination towards a bear trend is evident with the market indicators. Stochastic RSI has been pictured completing a bearish crossover right above the neutral zone, which may indicate the future declination of DOT’s price.
Awesome Oscillator or AO also failed to exhibit strong momentum in any direction but the presence of red candles at press time is a little alarming.
Important Range:
Resistance: $5.50, $5.26
Support: $4.76, $4.26
It is still a little early to call a short position. It will be better to wait until the price moves below the moving average.
Conclusion
While the consolidation phase is supposedly kicking in, the price will drop a little more before it rallies further ahead. Major indicators are slowly changing their trend, and over the next week, the market structure will be more clear.
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