Polkadot price has bounced off the crucial support zone of $50 after dropping from a high of $53.90 earlier in the week. Over the past three sessions, the altcoin has declined by 6.96%. According to CoinMarketCap, its market cap is down by 5.34% while its trading volume has risen by 9.55% over the past 24 hours. In comparison, the global crypto market cap is down by 2.35% at $2.88 trillion.
50 remains a key support zone for DOT, as has been the case since the beginning of November. After extending its previous losses, the crypto bounced off this support zone earlier on Wednesday.
At the time of writing, Polkadot price was down by 0.18% at 50.64. Since 1st November, the range between 49.05 and 53.97 has been a crucial one for the altcoin.
In the short term, I expect it to remain within this horizontal channel as the psychological level of 50 remains a steady support zone. It may hover around the aforementioned support level as the bulls gather enough momentum to push it to the resistance level at 52, which is where the 25 and 50-day EMAs have converged.
However, to get to that target, Polkadot price will need to move past the resistance at 51.40. On the flip side, the bears may retest the steadiness of the support at 50. If that happens, it may drop to 49.05 before bouncing back above 50.
This post was last modified on %s = human-readable time difference 04:20