Polkadot (DOT) price is trading above the $6.50 mark as bulls dominate the markets. Polkadot price faces strong resistance in leaving the $6.50 price level as the asset oscillates around the level.
The broader cryptocurrency market is also enjoying a strong bullish market sentiment across the last seven days. While most cryptocurrencies may have retraced across the last 24-hours, the assets remain bullish across the 7-day period.
Polkadot price had a strong start to December as the bulls charged at the $5.500 resistance level in an attempt to make a V-shaped recovery to the $6.00 price level. However, the price action could not break through the $5.500 level and the price retraced to the $5.00 support level. The bulls did not give up and made another attempt at breaking above but failed at the $5.50 price level.
The price action then turned bearish, slowly retracing to the $4.50 support level before starting to ascend once again. Between December 11 and December 17, Polkadot’s price climbed to the $5.50 level, only to fail at the level once again.
Subsequently, the price returned to the $4.50 support level before the bulls could stop the bearish activity. The price recovered above the $5.00 level but did not climb to the $5.50 level instead;, it consolidated just above the $5.00 level.
On December 28, the price crossed above the $5,50 with sharp bullish activity carrying the price above the $6.50 level before the day’s end. Since reaching the level, the price has not left the mark for more than a few hours and continues to oscillate around the level.
Across the technical indicators, the MACD shows decreasing bullish momentum as the two EMAs continue converging. The EMAs show signs of a bearish convergence, but if DOT closes the latest candle above the $6.720 level, the bearish crossover will be canceled.
Meanwhile, the RSI suggests a bearish movement as the indicator hovers around 70.00 marks. Unless the bulls can hold the price steady at the current level, Polkadot price may observe another correction to the $6.00 level.
The Bollinger Bands share a similar sentiment as the bands are contracting, suggesting a decline in Polkadot price volatility. The price is currently trading near the upper limit of the indicator and may be expected to move towards the lower limit.
Traders should expect Polkadot price to consolidate at the current level before a downwards movement.
Across the weekly charts, Polkadot price currently exhibits sharp bullish momentum as the price shows a 35 percent increase from the week’s opening price. The movement would not be too odd for the past week, but the recent candlestick only shows the price movement across the last 48 hours.
This movement is not sustainable, and Polkadot may be expected to observe consolidation or retrace back to the $6.00 level before rising again.