Polkadot Bounces Back but Encounters the $8.00 Obstacle

Polkadot (DOT) Price Long-term Trend: Bearish

The price of Polkadot (DOT) is rising but encounters the $8.00 obstacle. Earlier, the altcoin was expected to drop to $4.96, according to the price indicator. The price of DOT recovered and surpassed the 21-day SMA on January 1, 2025. The crypto price is below the 50-day SMA resistance but above the 21-day SMA. The DOT price will rise to $9.00 if the price breaks above the 50-day SMA.

The crypto will have to make a range-bound move after it is stuck at the 50-day SMA. On the other hand, the DOT price will return to the $6.00 support if it falls below the 21-day SMA support. At the moment of writing, the DOT price is trading at $7.84.

Technical indicators:  

Key Resistance Levels: $10, $12, $14
Key Support Levels: $5, $3, $1

Polkadot Indicator Analysis 

The price of the cryptocurrency has recovered and is now trapped between the lines of the moving average. The crypto is probably stuck between the lines of the moving average. The 50-day SMA is probably going to impede the price movement. The price bars on the 4-hour chart are situated above the lines of the moving average. The resistance at $8.00 has been impeding the upward movement.

General Outlook for Polkadot (DOT)

Polkadot recovers when it crosses above the moving average lines but encounters the $8.00 obstacle. However, the 50-day SMA or the resistance at $8.00 have impeded the upward rise. It’s conceivable that the cryptocurrency asset will drop or be forced to move in a range between the moving average lines. The altcoin sits below the most recent high, awaiting a favorable trend. The crypto signal is range-bound since the altcoin is trapped between the moving average lines.

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