Polkadot price is trading within a tight range as cryptocurrencies ease from Monday’s losses. After surging past the psychological level of $50,000 on Monday, the leading crypto – Bitcoin – pulled back while finding support at $49,034.50.
Based on the correlation that exists between Bitcoin and altcoins, most of the assets in the latter category are exhibiting a similar trend. For instance, Ethereum price is trading sideways for the second consecutive session while finding support at $3,298.48. Similarly, Dogecoin price is trading within a tight range of between $0.31 and $0.32.
Polkadot price has eased on its losses from the previous session. On Monday, it hit an intraday high of 28.68 before pulling back. At the time of writing, it was down by 0.51% at 27.71. Even with the high volatility, the crypto has remained above the resistance-turn-support level of 26 since Friday.
On a two-hour chart, Polkadot price is trading along the 25-day EMA and slightly above the 50-day EMA. I expect it to trade within a tight range as bulls gather enough momentum to retest the three-month high reached over the weekend.
The borders of the horizontal channel will likely be at Tuesday’s high of 28.22 and low of 27.16. A bullish breakout may enable the retesting of the three-month high of 29.37 hit on Saturday. On the flip side, a drop below the horizontal channel’s lower border will likely place the support level at Sunday’s low of 26.53.