Polkadot Price Prediction: DOT Price Bids in Full Swing at 31 December 2022

• Polkadot (DOT) price is attempting to reverse the bearish trend as per yesterday’s gain.
• price action is remaining under falling parallel channel after vital support breakdown.
• A 0.71% overnight gain in market capitalization gives relief to DOT investors.

Polkadot (DOT) price is attempting to spread little positivity in the crypto market. Buyers had given up due to aggressive selling but as per recent price rebound, they are gradually moving around this asset.

Price action of Polkadot crypto is forming lower-highs and lower-lows so far. Sellers have taken advantage, therefore DOT token spent more than 50 days under the bearish price structure (below the chart). In fact, buyers are going to witness a fourth bearish candle this week along with 3.81% loss.

Source: DOT/USDT by Tradingview

At the time of writing, Polkadot token appears extreme sideways at the $4.32 mark against the USDT. Meanwhile, buyers try to manage DOT/USDT price higher than the midline of the bearish channel. A 0.71% overnight gain in market capitalization gives relief to DOT investors, but still it stays below the $5 billion.

Trading volume slowly decreases because bears cover their shorts as of now. Thus hourly price action makes higher-lows. Interestingly, selling is not completed yet, it’s likely to hit $4.0 next support level before a strong bounce back. On the higher side, $4.7 level observes as an immediate bullish hurdle.

What Relative Strength Index Says?

Source: DOT/USDT by Tradingview

Over the daily price chart, Relative Strength Index (RSI) has stayed below the semi-line (50 mark) since early November. In this 50 trading sessions, buyers are constantly witnessing roller-coaster rides so far. As of now, oversold RSI peak moves out of the extreme lower territory, and may increase towards 50 mark in January 2023.

As per MACD, buyers have to struggle a lot to overcome selling pressure. Both MACD lines moved closer to each other in negative region, showing weakness in Polkadot price.

Summary

Soft bullish momentum can’t help buyers to move Polkadot Price higher than the previous swing high of $4.53. Buyers have to gather more token to see portfolio’s growth. Otherwise more sell-off likely until $4.0 support level.

Support level – $4.0 and $3.5

Resistance level – $5.0 and $7.0

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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