Polkadot price movements in Wednesday’s session is comparable to those of the leading crypto – Bitcoin. After trading steady above the support level of $60,000 for about two weeks, BTC is currently at $59,062.01.
Notably, altcoins often follow the trend set by Bitcoin price; which is observable in Polkadot. Dogecoin and Ethereum are some of the altcoins that are on a similar trajectory. ETH and DOGE are on a rebound after dropping below crucial support levels of $40,000 and $0.2200 respectively.
DOT has bounced off the resistance-turn-support level of 40 after pulling back from Wednesday’s high of 45.97. The bulls were on track to retesting the month’s high of 46.37.
Since surging past the psychological level of 40 about two weeks ago, Polkadot price has largely been trading within a range of between 40 and 46. At the time of writing, it was down by 6.54% at 41.87.
On a three-hour chart, the altcoin is trading below the 25 and 50-day exponential moving averages; pointing to additional pressure in the near term.
Despite the observable volatility, I expect Polkadot price to remain above the support zone at 40. It will likely bounce back to find resistance along the 25-day EMA at 44. Past that level, the bulls will have another chance to retest October’s high of 46.37. However, this thesis will be invalidated by a move below the support zone at 40.
This post was last modified on %s = human-readable time difference 12:39